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City Council Agenda Packet 05-14-2007
AGENDA REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, May 14, 2007 - 7 p.m. SPECIAL MEETING: 5 pm - Interview with fIrms for Public Works Need Study 6:50 pm - Reconvene Board of Appeal and Equalization Mayor: Clint Herbst Council Members: Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski I. Call to Order and Pledge of Allegiance 2A Approve minutes of April 23, 2007 Special Council Meeting - Biosolids Workshop 2B. Approve minutes of the April 23, 2007 Regular Council Meeting 2C. Approve minutes of April 30, 2007 Special Council Meeting - Jt. Planning Workshop 2D. Approve minutes of April 30, 2007 Special Council Meeting - Board of Review 2E. Approve minutes of May 4, 2007 Special Council Meeting - Cancer Treatment Legislation 2F. Approve minutes of March 12, 2007 Special Council Meeting- Public Works Needs Study 3. Consideration of adding items to the agenda. 4. Citizen comments, petitions, requests and concerns. 5. Consent Agenda: A. Consideration of ratifying hires and departures for MCC. B. Consideration of approving charitable gambling license for Monticello Lions Club at Chatters, 4181 Cedar Street. C. Consideration of approving renewal of charitable gambling license for the American Legion Post #260 at 304 Elm Street. D. Consideration of request by the Initiative Foundation for monetary contribution. E. Consideration of establishing policy for reimbursement for cell phone minutes for City Council and formal approval of cell phone policy. F. Consideration of annual renewal oflicense agreement allowing use of right-of-way for Crostini's Grille. G. Consideration to review and accept the Year-End EDA Financial Statements, Activity Report and 2007 proposed budget. H. Consideration of approving liquor license for Chatters Restaurant. 1. Consideration of award of bids on sale of wheel park equipment. J. Consideration of extension of conditional use permit. Applicant: Moon Motors. Agenda Monticello City Council May 14, 2007 Page 2 K. Consideration of acceptance of donation for Groveland Tree Planting from Monticello Lions Club. 1. Consideration of approving carnival/traveling show permit for Minnesota Magic Midway. 6. Consideration of items removed from the consent agenda for discussion. 7. Consideration of selecting firm for Public Works Needs Study. 8. Consideration of replacement of Parks Superintendent 1994 truck. 9. Consideration of approving plans and specifications and authorizing advertisement for bids for Chelsea Road Improvement., Project No. 2006-31 C. 10. Consideration of authorizing distribution ofEA W for Mills Fleet Farm. 11. Consideration of award of bids for pond improvement at A Glorious Church and Monticello Middle School, Project No. 2006-9C 12. Consideration off ormation of Fiber Optics Committee and designation of authority and responsibility of the Committee. 13. Consideration of discussion of merger ofHRA and EDA. 14. Approve payment of bills for May. 15. Adjourn. Special Council Minutes; 4/23/07 MINUTES SPECIAL COUNCIL MEETING Monday April 23, 2007 - 5:45 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski. Members Absent: None 1. Call to Order. Mayor Herbst called the special meeting to order at 5:45 p.m. The purpose of the meeting was to discuss financing options for the biosolids drying system. 2. Biosolids drvinl!. system financinl!. options. Mark Ruff from Ehlers and Associates reviewed policy consideration for the biosolids. He noted that it was unusual for a city's user fees to cover only operating and maintenance costs. Two questions the City needs to consider: 1) Who pays? and 2) How much risk does the City take? He stated the fact that Sunny Fresh is a major user kicks any bond issue into the taxable bond category depending on how payments are structured. Mark Ruff pointed out that the property tax levy for bonded debt is no longer in the budget and even though there are some monies in the trunk fund those monies are needed for infrastructure improvements in addition to the biosolids. There are a number of issues to consider in financing the biosolids project. These include the amount of cash used versus the amount of bonded debt; how to spread the costs of debt services and how to structure the repayment ofthe debt. It was recommended only $1,000,000 in cash goes toward the project because of concern about maintaining trunk funds balance for other needs and to offset the slower growth. $2,000,000 of the improvement cost would be necessary to take care of the existing users excluding Sunny Fresh. Mark Ruff noted that not all costs are related to growth; some are related to upkeep. Mark Ruff stated that Sunny Fresh's agreement to pay certain wastewater treatment costs complicates the situation because if one user is a primary factor for requiring the improvement it could make the bonds taxable. Slow growth may cause the City to use a property tax levy to help cover the debt cost. Bret Weiss talked about future SAC & WAC charges. Currently they are about $7,000+ per unit. Bret Weiss wants to keep $500,000 in the trunk fund. If Mark Ruffs recommendations are applied the SAC and WAC charges would be about $8,000 per unit. Bret Weiss noted the City would be deferring some improvements proposed to be funded by trunk fees ifthe growth isn't there. The recommended option for financing the biosolids improvement would have a bond term of 15 years. The use of $ 1,000,000 in cash would leave a bond issue of $8,800,000. Sale of the farm land currently used for biosolids application would generate $5,000,000. However, the land sale would not take place for seven years. Other revenues to cover the debt would be generated by assessments, SACIW AC, trunk charges and tax levy The biosolids is a change in 1 Special Council Minutes; 4/23/07 technology so the land would be an asset no longer needed by the system. Estimated sale price for the farm land is $30,000 acre. An additional $1,000, 000 is needed just to offset the cost of taxable bonds so the City's financial consultant would be doing additional research to see if there was a method for making the bonds tax-exempt. John Simola talked about the existing agreement with Sunny Fresh. This agreement paid for a major part of the gravity belt thickener and at a future date Sunny Fresh would be responsible for Yz the cost of a sludge storage tank. When the City adds a fourth SBR tank, Sunny Fresh would pay 37% of that cost. It was recommended to phase in the increase in user fees over three years. Because of the slow economic market they didn't want to put any more pressure on users. The difficulty in these discussion on biosolids financing is that the City has had only one meeting with Sunny Fresh and Sunny Fresh did not have a chance to process the information submitted. Another option called for a slower increase in user fees over a period of 5-6 years which would allow users to more slowly absorb the cost and defer any principal payments on the debt until 2015. Sunny Fresh would pay approximately $250,000 in user fees per year. It was noted this option has not been seriously discussed with Sunny Fresh. Residential users generate $1,300,000 in user fees and industrial users $750,000. Mark Ruff stated operating costs will also increase not just debt cost. Current sewer cost of $350 a year would increase to $420 per year. Mark Ruff said you cannot put all charges to future growth. Mark Ruff felt it was necessary to have more discussions before a decision is made on how to finance this project. Clint Herbst asked how the City could get this far along before Sunny Fresh was brought in on discussions. Rick W olfsteller said the City has been looking at this for a number of years and was going on the assumption that trunk funds were going to cover this. The slower growth is causing concern if sufficient trunk funds will be collected to cover debt cost. Clint Herbst felt the City should take a step back and look at this closer with Sunny Fresh. Clint Herbst felt there might be some efficiencies that could be done at the plant. Clint Herbst said as a Council they have not sat down and set priorities as far projects that need to be fmanced. Brian Stumpf said the City has to look at the burden on the taxpayer. He was concerned about tax increases as well as user fee increases. Bret Weiss said the slow market has affected how much money was in the trunk fund. Shifting the SAC charges from the general fund also impacted the trunk funds. Bret Weiss said the question is whether the farm will work for the City for biosolids application for a few more years. There was discussion on restrictions on placing biosolids on the farm. John Simola said they are getting close to affecting the groundwater with the amount of nitrogen they are putting on the site. A MPCA representative states that the sludge requirements may change at any time. John Simola said they are maxed out on the farm so the City has to look at different options. Clint Herbst didn't feel all the questions were answered at this time. Susie Wojchouski asked why the City was going the biosolids drying route. John Simola provided a brief history of the actions that brought them to this point. Clint Herbst said the Council was not second guessing the treatment option that was being selected but the timing of it. He felt there was some additional study that needed to be done. He also noted that the 2 Special Council Minutes; 4/23107 City decreased the levy over the last few years and may have to look at adding some tax levy for this. Rick Wolfsteller said the City has had such favorably low rates for sewer and water while other cities rates were high because those cities were using user fees for debt service as well as operating and maintenance cost. Tom Perrault stated that dealing with biosolids was a necessity and purchasing the YMCA site was not. Brian Stumpf said the biosolids is similar to the YMCA because the property owner is hit twice. With the YMCA it would be city tax increase and county tax increase. With biosolids it would be user fee increases and a tax levy. Susie Wojchouski asked what happens if the biosolids treatment is not built and the farm could no longer be used for spreading the biosolids. John Simola said the City could landfill the biosolids at an estimated cost of$30,000 a month. Also because of volume ofbiosolids to treat there would be a lack of adequate treatment time in the digester so there may come a time when the City could not longer land spread the biosolids. Don Roberts from Sunny Fresh stated that Sunny Fresh only found out about this project 10 days ago. This is a $10,000,000 project and the amount of impact it has on Sunny Fresh has not yet been determined. Sunny Fresh would like to know more about the project. Don Robert said Sunny Fresh's focus has been waste reduction and they are continuing to try to that. The workshop closed at 6:45 p.m. Recording Secretary 3 Council Minutes: 4/23/07 MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, April 23, 2007 - 7 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski Members Absent: None 1. Call to Order and Pledl!:e of Allelrlance Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was said. 2A Approve minutes of March 22. 2007 Special Council Meetin!!: - Fiber Optics. Tom Perrault noted a correction on page 2. TOM PERRAULT MOVED TO APPROVE THE MiNUTES OF THE MARCH 22, 2007 SPECIAL COUNCIL MEETiNG RELATiNG TO FIBER OPTICS AS CORRECTED. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2B. Approve minutes of the April 6. 2007 Special Council Meetin!!: - Annexation. SUSIE WOJCHOUSKI MOVED TO APPROVE THE MINUTES OF THE APRIL 6, 2007 SPECIAL COUNCIL MEETiNG RELATiNG TO ANNEXATION. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED WITH CLiNT HERBST ABSTAiNiNG. 2C. Approve minutes of April 9. 2007 Special Council Meetin!!: - Biosolids Workshop. WAYNE MAYER MOVED TO APPROVE THE MiNUTES OF THE APRIL 9, 2007 SPECIAL COUNCIL MEETiNG RELATiNG TO THE BIOSOLIDS PROJECT. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2D. Approve minutes of April 9. 2007 Re!!:ular Council Meetin!!:. Susie Wojchouski noted that Ewald Peterson's first name had been misspelled in the minutes. Tom Perrault noted a typing error on page 3. SUSIE WOJCHOUSKI MOVED TO APPROVE THE MiNUTES OF THE APRIL 9, 2007 REGULAR COUNCIL MEETiNG AS CORRECTED. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 1 Council Minutes: 4/23/07 3. Consideration of addin!! items to the a!!enda. An update on hiring for the Finance Director position and the changing nature of the Fiber Optics Task Force Committee were added to the agenda. 4. Citizen comments, petitions, reQuests and concerns. 4A. Presentation bv Monticello-Di!! Lake Hospital Jeff Young, Hospital District Board member introduced Len Olson, COO of the Monticello-Big Lake Hospital. Mr. Olson gave a presentation providing history of the hospital, current operations and future goals, including plans for expansion. Hospital CEO, Barb Schwientek was also present. It was noted that the information presented to the Council was also contained in a brochure that was sent to all residents in the hospital district. After the presentation Mr. Olson offered to answer any questions from the Council. 4B. Other Comments: Ron Adkins, 201 Mississippi Drive, lives adjacent to Swan Park. He indicated that his mailbox had been knocked down by the snowplow during snow removal. He also expressed his concern about the number of signs placed, in the park, on the street and on his property noting that there is a total of 19 signs posted. Other items he brought to the attention of the Council included the drainage problem on city owned land across the street from his property and a tree that had fallen down by the river. The tree had been cut up by someone so the view of the swans was not obscured but the tree had not been removed. He felt that the park was being neglected as far as mowing citing that there were times when the grass was in excess of six inches and that he ended up mowing it several times. Clint Herbst and Susie Wojchouski will meet with Mr. Adkins at the site to review the situation. Brad Fyle, 501 West Third Street, representing Lawrence Clausen, spoke regarding a blight notice that Mr. Clausen received from the City on property he owns on Linn Street. The property is the site of a tri-plex and has limited parking. Since the violation notice stated that the correction had to be made by May 7th, he was requesting an exemption from the load limits in order to accomplish compliance. Mr. Fyle indicated the blight notice state the violation was for front street parking. Wayne Mayer stated that the original concern was a couch that was on the driveway but he was not aware of the parking violation. Clint Herbst and Gary Anderson will meet with Brad Fyle on the violation. 5. Consent A!!enda: A. Consideration of ratifying hires and departures MCC and liquor store. Recommendation: Ratify hires and departures as identified. B. Consideration of approving monthly renewal of pawn shop license for Walt's Pawn Shop. Recommendation: Approve renewal of the pawn shop license for Walt's Pawn Shop for another month. 2 Council Minutes: 4/23/07 C. Consideration of approving annual liquor license renewals. Recommendation: Approve the foJlowing license for July 1, 2007 through June 30, 2008 contingent upon applicants' submittal of insurance documentation and payment oflicense fees: Intoxicating Liquor On-Sale: 1) MonticeJlo Liquor, Inc.; 2) Blue 360; 3) River City Lanes; 4) Jalapeno's; 5) Hawk's Sports Bar; 6) MonticeJlo Country Club; 7) Cornerstone Cafe & Catering; 8) Applebee's Family Restaurant; 9) Crostini's GriJle; 10) Guadalajara Mexican Restaurant and 11) Rancho Grande. Intoxicating Liquor Sunday On-Sale: 1) MonticeJlo Liquor, Inc; 2) Blue 360; 3) River City Lanes; 4) Jalapeno's; 5) Hawk's Sports Bar; 6) MonticeJlo Country Club; 7) Applebee's Family Restaurant; 8) Crostini's Grille; 9) Guadalajara Mexican Restaurant; 10) Rancho Grande; 11) VFW Club and 12) American Legion Club. Non-Intoxicating 3.2% Beer On-Sale: 1) MCC Concessions at Ballfields; 2) Lions Riverfest Celebration; 3) China Buffet and 4) Pizza Factory. Non-Intoxicating 3.2% Beer Off-Sale: 1) MonticeJlo Liquor, Inc.; 2) Cub Foods; 3) Target Store T-2l80; 4) Wal-Mart Supercenter #3624 and 5) Super American #4479 Club License: 1) VFW and 2) American Legion Wine/Strong Beer Combination License: DeAngelo's Pizza and Pasta D. Consideration of reviewing information on sign mounted traffic counting devices and approving purchase of either sign mounted device or traffic speed monitor, trailer and LED display. Recommendation: Approve the purchase of SMART Model 600 trailer-mounted speed monitoring device from Kustom Signals, Inc. in the amount of $6,530.00 not including sales tax. E. Consideration of approving advertising for Part-time Finance Clerk. Recommendation: Approve advertising externally and internally for a part-time Finance Clerk with the possibility that this could become a full-time position at a grade 3 level with a pay range of$13.45 to $18.59 per hour. F. Consideration of approving a request for a charitable gambling license for the MS Society, Mn Chapter 00562 at Monticello Liquor, 130 East Broadway. Recommendation: Adopt Resolution No. 2007-25 authoring the State Gambling Control Board to approve a charitable gambling license to the Minnesota Chapter of the Multiple Sclerosis Society to conduct charitable gambling activities at Monticello Liquor, Inc. 130 East Broadway. G. Consideration of approving request for a charitable gambling license for the MonticeJlo Lions at Blue 360 Sports Bar, 1114 Cedar Street. Recommendation: Adopt Resolution No. 2007-26 authorizing the State Gambling Control Board to approve a charitable gambling license for the Monticello Lions Club to conduct charitable gambling activities at Blue 360 Sports Bar, 1114 Cedar Street. 3 Council Minutes: 4/23/07 H. Consideration of a request to approve preliminary and [mal plat for Monticello Business Center, a commercial subdivision in a B-4 District. Applicant: Wal-Mart Real Estate Business Trust. Recommendation: Approve the preliminary and final plat of the Monticello Center Business Center Fourth Addition subject to the finding that the proposed use is consistent with the intent of the B-4, Regional Business District and the Comprehensive Plan and subject to the applicant complying with all recommendations of the City Engineer as noted in the memo dated March 28, 2007. 1. Consideration to approve a resolution authorizing conveyance of city property to the HRA in and for the City of Monticello. Recommendation: Adopt a resolution authorizing conveyance of city property to the Housing and Redevelopment Authority in and for the City of Monticello. J. Consideration to adopt a resolution approving a Business Subsidy Agreement between the Housing and Redevelopment Agreement in and for the City of Monticello and WRE, LLC. Recommendation: Adopt a resolution approving a Business Subsidy Agreement between the Housing and Redevelopment Authority in and for the City of Monticello and WRE, LLC. K. Consideration of approval of plans and specifications and authorize advertisement for bids for the 2007 Street Reconstruction Program, City Project No. 2007-0 I C. Recommendation: Approve the plans and specifications as presented and authorize the submittal ofthe advertisement for bids for publication. L. Consideration of accepting donation for Fire Department equipment from Wal-Mart and Land of Lake Choirboys and donation for lighting project at Bridge Park from the Lions Club. Recommendation: Adopt Resolution No. 2007-27 approving the contribution and authorizing the use of funds as specified by the donor. M. Consideration of approving a temporary liquor license for St. Henry's wine tasting event on June 15, 2007. Recommendation: Approve the temporary on-sale license for the Church ofSt. Henry's for a wine tasting event on June 15, 2007. N. Consideration of request for authorization to obtain appraisals for Chadwick/Spike properties. Recommendation: Authorize staff to obtain an appraisal from a qualified commercial and residential land appraiser on the three parcels identified. O. REMOVED FROM AGENDA P. Consideration of establishing a change fund balance for MCC for ballfield concessions. Recommendation: Approve the establishment of a change fund for the MCC for the operation of the concessions at the ballfields. BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS #5D, #5E, #5H, #5K AND #5N. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANlMOUSL Y. 4 Council Minutes: 4/23/07 6. Consideration of items removed from the consent al!:cnda for discussion. #5E Purchase of traffic counting device: Wayne Mayer asked Street Superintendent Tom Moores to provide information on the traffic counting device. Tom Moores indicated that he had talked to Kustom Signals and explained to the company what the needs of the community are. The original price submitted to the Council at an earlier date was for a trailer with 18" letters. The City wanted 12" LED letters which dropped the cost from $11,285.00 to $6,530.00. Tom Moores felt the SMART Model 600 would meet the City's needs. He added that the bid price did not include sales tax or a down loader which is a card reader that hooks into the computer. The cost for the card is $150. Brian Stumpf noted that this was an instance that demonstrated how important it was to look at all options before making a decision. The additional research by Tom Moores provided a significant cost savings to the City. BRIAN STUMPF MOVED TO APPROVE THE PURCHASE OF SMART MODEL 600 TRAILER-MOUNTED SPEED MONITORING DEVICE FROM KUSTOM SIGNALS, INC. IN THE AMOUNT OF $6,530.00 NOT INCLUDING SALES TAX OR THE DOWNLOADING DEVICE. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #5F Charitable Gambling License for MS Society of Minnesota: Wayne Mayer stated that with charitable gambling licenses for national organizations very few dollars ofthe revenue generated come back to the community. He suggested staff check with the State Gambling Control Board to see if it can be determined how much would be coming back into the community. He felt the same standards other license holders comply with should be applied here as well. WAYNE MAYER MOVED TO TABLE ACTION ON THE CHARITABLE GAMBLING LICENSE FOR THE MULTIPLE SCLEROSIS SOCIETY OF MINNESOTA UNTIL THE NEXT MEETING. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #5H Preliminary and final plat approval for Monticello Business Center Fourth Addition: Because of his affiliation with Wal-Mart, Tom Perrault requested this item be pulled so that he could abstain from voting on the matter. BRIAN STUMPF MOVED TO APPROVE THE PRELIMINARY AND FINAL PLAT OF THE MONTICELLO BUSINESS CENTER FOURTH ADDITION SUBJECT TO A FINDING THAT THE PROPOSED USE IS CONSISTENT WITH THE INTENT OF THE B-4, REGIONAL DISTRICT AND THE COMPREHENSIVE PLAN AND SUBJECT TO THE APPLICANT COMPLYING WITH THE RECOMMENDATIONS OF THE CITY ENGINEER AS NOTED IN THE MEMO DATED MARCH 28,2007. Clint Herbst stated he had talked to the Gary Anderson, the Building Official about site review that was done when a gas station was proposed to be erected on the site and the fees for the site review have not been paid. 5 Council Minutes: 4/23/07 BRIAN STUMPF AMENDED HIS MOTION TO INCLUDE THAT APPROVAL INCLUDE PAYMENT BY THE APPLICANT FOR PREVIOUS REVIEW OF THE SITE BY CITY STAFF. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT ABSTAINING. #5K Plans and Specifications for 2007 Street Reconstruction, Project No. 2007-01C: Tom Perrault stated he was in opposition to the proposed width of the streets in the project area and had pulled the item from the consent agenda so he could vote in opposition. SUSIE WOJCHOUSKI MOVED TO APPROVE THE PLANS AND SPECIFICATIONS AS PRESENTED AND AUTHORIZE THE SUBMITTAL OF THE ADVERTISEMENT FOR BIDS. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION. #5N Authorization to obtain appraisals for Chadwick/Spike Property: Wayne Mayer asked if the appraisal firm submitting the low price for the appraisal on the Hoglund property could also be used for this appraisal work. Rick Wolfsteller, Finance Director, indicated he would get the information on prices for the appraisal work to the Council. WAYNE MAYER MOVED TO DIRECT STAFF TO OBTAIN AN APPRAISAL FROM A QUALIFIED COMMERCIAL AND RESIDENTIAL LAND APPRAISER ON THE THREE P ARCELS DESIGNATED BY THE CITY WITH THE WORK TO BE DONE IN CONJUNCTION WITH THE APPRAISAL ON THE HOGLUND PROPERTY. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION AS HE FELT THE CITY COULD NOT AFFORD ADDITIONAL LAND PURCHASES AT THIS TIME. 7. Public Rearm!!: - Consideration of adoptin!!: proposed assessment roll for delinquent utility bills and certification of assessment roll to County Auditor. Mayor Herbst opened the public hearing for the adoption of the proposed assessment roll for delinquent utilities. No one present spoke for or against the proposed assessment. Mayor Herbst closed the public hearing. BRIAN STUMPF MOVED TO ADOPT THE PROPOSED ASSESSMENT ROLL FOR DELINQUENT UTILITY BILLS AND CERTIFY THE ASSESSMENT TO THE COUNTY AUDITOR. SUSIE WOJCHOUSKI SECONDEDTHE MOTION. MOTION CARRIED UNANIMOUSLY. Wayne Mayer brought up that one of the accounts that is usually on the list of delinquent amounts is also in non-compliance with certain city ordinances. He questioned if there was any way the City could tie them together. City Attorney, Tom Scott said that could not be done. Tom Perrault noted that one of the properties listed as having a delinquent amount no longer has a structure on it. Rick Wolfsteller indicated that the delinquent amount has been removed from the assessment roll. 6 Council Minutes: 4/23/07 8. Public Hearinl!: _ Consideration to aoorove a resolution adootiDl!: of the modification to the Redevelooment Plan for Central Monticello Redevelooment Proiect No.1 and the establishment ofTIF District No. 1-38 thereiD and the adootion of the TIF Plan therefore. Aoolicant: WRE. LLC dba Walker In-Store. Ollie Koropchak provided background information on the project which is an economic district which calls for an increment over a period of eight years. Walker In-Store is relocating from Albertville. Ollie Koropchak noted that only about I Y2 acres of the site is developable and the rest of the area is ponding. Eleven new jobs at $18.81 per hour without benefits will be created. Mayor Herbst opened the public hearing. There was no one present who spoke on the proposed redevelopment plan. Mayor Herbst then closed the public hearing. TOM PERRAULT MOVED TO APPROVE A RESOLUTION ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR PROJECT NO. I AND ESTABLISHING TIF DISTRICT NO. 1-38 THEREIN AND THE ADOPTION OF THE TIF PLAN THEREFOR. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 16. Consideration of a oiDtin re resentatives to MonticellolBi Lake s Joint PlanniD Committee and RefraiD from SubmittiDl!: Annexation Request. Because representatives from the City of Big Lake and Big Lake Township were present, Mayor Herbst moved this item up on the agenda. On April 16, 2007 Council representatives met with representatives from the City of Big Lake and Big Lake Township regarding the recent annexation resolution adopted by the City of Monticello. The reasons for the City action were explained noting that the scope of the area being considered in the annexation agreement between Big Lake and Big Lake Township would have long term impacts on the City of Monticello. Traffic issues and the timing of development are key concerns for Monticello. Jeff O'Neill compared this situation to that of the City of St. Cloud that had to make major infrastructure changes to the roadway system because of development across the river. Monticello would have to look at similar type changes if the proposed annexation area develops. The parties involved agreed they would prefer to spend their dollars on joint planning rather than legal expenses for a contested annexation. In a proposed joint resolution by the City of Big Lake and Big Lake Township they would go with joint planning if Monticello would withdraw their annexation resolution. At this point the City has issued only a Notice of Intent to Annex. Nothing has been filed with the state. Jim Thayer, Economic Development Director for the City of Big Lake stated the City will be meeting on Wednesday of this week to consider adoption of the proposed resolution. James Sanford from Big Lake Township indicated that they will be considering the resolution at their meeting which is later this week. There was some discussion on language ofthe proposed motion. City Attorney, Tom Scott suggested this language, "that the City of 7 Council Minutes: 4/23/07 Monticello withdraws it Notice of Intent to Annex conditioned on the City of Big Lake, Big Lake Township and the City of Monticello entering into an agreement." The intent of the Council was to get the parties to the table. Clint Herbst felt Tom Scott's proposed language was appropriate. Wayne Mayer wanted to make sure that legally the motion is correct and that the City of Big Lake, Big Lake Township and the City of Monticello were all on the same page as to what will transpire next. He didn't want to take this action to appease Big Lake and Big Lake Township. Wayne Mayer wanted to make sure everything was in place before the City relinquished its rights. Clint Herbst felt the parties understand that Monticello has a vested interest in getting this taken care of. Brian Stumpf stated that if this was true he would like not to have them use the term "hostile annexation" which was the term used in the Sherburne County paper. Susie Wojchouski noted that term was used in the resolution Wayne Mayer said in the rush to get the meeting in only three members of the Council were able to attend. Clint Herbst pointed out the difficulty of finding a date that was mutually agreeable to all members of the various entities. Clint Herbst felt the City should withdraw their Notice of Intent to Annex with language that would be satisfactory to all three parties. Clint Herbst felt it should be contingent upon the joint resolution being signed by all three parties. Jeff 0' Neill noted he had discussed the language with Chris Hood the City's legal counsel on annexation who had expressed some concern about the language. Brian Stumpf asked how long the Notice of Intent to Annex can be left open until it becomes null and void or lapses. Tom Scott did not have an answer for that. Clint Herbst asked if the Council had any other concerns besides traffic issues. Wayne Mayer stated how the property would be zoned is also a consideration as the zoning could create different traffic patterns and traffic volumes. Wayne Mayer said creating a joint board is the way to proceed but he didn't want to give up any of the City's rights. Wayne Mayer would like the three parties to sign an agreement that three parties will be equally represented in this planning task force. He asked if the City relinquishes its rights what assurance does the City have that they will be invited to the table on an equal footing with the other two communities. Wayne Mayer wanted to make sure the City is not excluding itself. Susie Wojchouski asked ifit was possible to table this motion until the next meeting so that Tom Scott could look at the wording. Tom Perrault didn't feel the language could be drafted at tonight's meeting. CLINT HERBST MOVED TO RESCIND THE NOTICE OF INTENT TO ANNEX CONTINGENT UPON THE SIGNING OF A JOINT AGREEMENT THAT IS APPROVED BY LEGAL COUNSEL AND CONDITIONED UPON THE THREE ENTITIES SIGNING THE JOINT AGREEMENT. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Tom Scott indicated he was of the understanding that Chris Hood would be the one to review and approve the language adding that the withdrawal ofthe Notice ofIntent would not be effective until all three parties signed it. He also noted that what the City was proposing is different from language contained in the resolution submitted by Big Lake and Big Lake Township Brian Stumpf did ask that his question about a sunset clause for Notice of Intent be researched and the information forwarded to him. 8 Council Minutes: 4/23/07 9. Review of fmancinl! options for biosolids proiect. Prior to the regular Council meeting a workshop was held on financing options to fund the proposed biosolids treatment. More detailed information is contained in the minutes of the biosolids workshop minutes. 10. Consideration of action relatinl! to bids received for the biosolids proiect. Public Works Director, John Simola updated the Council on the bids that were received on the biosolids project. Contractors bid both the Kruger drying system and the Komline Sanderson drying system. The bids for capital cost for the Kruger system ranged from $9,523,500 to $10,043,000. The bids for capital cost for the Komline Sanderson system ranged from $8,900,000 to $9,365,000. The bids came in $325,000 less than estimate. The project calls for installation of a dryer and dryer building, two filter press, odor scrubber and bagging system. The bids are good for 60 days from the date of opening (February 28,2007) and those 60 days are nearly up. The low bidder has indicated a willingness to extend his bid price for an additional 15 days. The City has three options which include: 1) Awarding the contract to the lowest bidder, John T. Jones for $8,900,000 for the Komline Sanderson system; 2) Reject the bids and rebid the project after a short period of time at an estimated cost of $9,325,000; and 3) Reject the bids and delay the project for 1-3 years at an estimated cost of $11,860,000. Clint Herbst stated the City had conducted a workshop prior to the regular meeting regarding financing options for this project since the impact of industrial users was considerable. Clint Herbst stated he was not comfortable with proceeding with the project at this time and felt the project should be delayed 1-3 years. Brian Stumpffelt the Council owed it to their constituents to be responsible. If the timing is not right for the project they should not go forward with it. He thanked all the members who served on the biosolids committee noting it was a lengthy process to get to this point. Susie Wojchouski expressed her concern about the industrial users that should have been brought into the project discussions earlier. Tom Perrault felt the City should proceed with this project but work within the next 1-2 weeks on financing. He noted there is additional cost in delaying this project and it does take 1-2 years to build. He doesn't want to see biosolids continue to be spread on the land. Tom Perrault noted that are more disposal options for the City to go with if they utilize a drying system Brian Stumpf said he doesn't look at this as a financing issue but rather as a needs issue and right now the need isn't there. Wayne Mayer said every so often an issue comes before the Council that makes you rack your brains and this is such an issue. Wayne Mayer said he didn't like the fact that the City is scraping to come up with ways to finance the project especially the need to sell the existing farm land to help finance the cost. Tom Perrault countered that by the time the land is proposed to be sold, the City would be producing dry biosolids and there would be other options for disposal of the biosolids. John Simola stated that tabling this project did not eliminate the need for certain decision making by the Council. The City currently does not have capacity for sludge storage and there are some improvements that have to be made to the existing system. 9 Council Minutes: 4/23/07 Clint Herbst said the project should be tabled so the City could take 30-60 days and take time to get it done right. Clint Herbst felt that would keep the ball moving on the decision as to what improvements need to be done. BRIAN STUMPF MOVED TO REJECT THE BIDS RECEIVED AND TABLE THE PROJECT FOR DISCUSSION FOR NO LONGER THAN 60 DAYS. Susie Wojchouski asked representatives from Sunny Fresh Foods if this was a good time frame for them. Don Roberts stated that while they only learned of this only ten days ago, they felt they would need at least 60 days to understand the issues relating to the biosolids proj ect. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION. 11. Consideration of approvinl!. an amendment to the Monticello Zoninl!. Ordinance Chapter 3-Sffl as related to the exterior storal!.e of vehicles in rear vards in residential districts. Applicant: Citv of Monticello. Steve Grittman provided background information noting that this amendment stemmed from the adoption of amendments to the blight/nuisance ordinances. It was felt junk vehicles or any vehicles parked in the rear yard have the same impact on a neighborhood. The ordinance amendment would prohibit parking of vehicles in the rear yard with one exception. The Plarming Commission recommended approval of the amendment and discussed some other parking issues such as parking in the side yard. There may be some additional amendments to the ordinance after the next Planning Commission meeting. Brian Stumpf asked if the ordinance prohibited parking junk vehicles in front of a garage. Brian Stumpf wanted to make sure there was no loophole in the ordinance that would allow junk cars in the yard. Clint Herbst said the intent of the Council was to clean things up in town but he is afraid this Is snowballing and getting too much like big brother. Clint Herbst felt the City should be balanced in this area. Tom Perrault asked if the amendment applied only to cars or whether it included snowmobiles. Steve Grittman indicated it covered passenger vehicles only. Brian Stumpffelt if the Plarming Commission is going to be addressing this in May, the City should hold off adopting this amendment until the Planning commission had completed review ofthe ordinance. BRIAN STUMPF MOVED TO TABLE ACTION ON THE AMENDMENT UNTIL THE PLANNING COMMISSION HAS REVIEWED AND MADE RECOMMENDATIONS FOR THE ENTIRE PARKING ORDINANCE. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 10 Council Minutes: 4/23/07 12. Consideration of establishment of an overlav district applied to properties alon!!: River Street and an amendment to the Monticello Zonin Ordinance Section 3-3 re ulatin front vard setback averal!:in!!:. Applicant: City of Monticello. Steve Grittman indicated this matter had come to the Council earlier and the Council had sent it back to the Planning Commission. The Planning Commission again held a public hearing and reviewed the proposed ordinance amendment. The Planning Commission is recommending the elimination of the averaging requirement and going with a 30' setback. Steve Grittman stated that in applying the setback rule to the lots along River Street a 30' setback produced the lowest number of non-conforming lots (only 7). Clint Herbst asked about changes proposed. Steve Grittman stated that Section F of the ordinance was proposed to be deleted as was the reference to Section F that was contained in Section C. SUSIE WOJCHOUSKI MOVED TO APPROVE THE AMENDMENT TO SECTION 3-3[F] AND SECTION 3-3[C]. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. John Bondhus, 711 West River Street, had received a notice about the Planning Commission hearing on the ordinance amendment. He was confused by the agenda item but stated he believed the elimination of the averaging provision and not having an overlay district would be the best route to go. 13. Consideration of cost sharin!!: for overlav of 85th Street. John Simola reported that LeRoy Kiputh, Monticello Township maintenance staff had talked to him last week about improvements to 85th Street NE. Because a portion of the City abuts this street, the township was asking about the City participating in the improvement. In further investigation it was determined that the Featherstone property which abuts 85th Street had been annexed into the City. There is a provision in the orderly annexation agreement which states that if a line road becomes the boundary the City assumes responsibility for the road. In that case the City would be responsible for closer to 1700 feet of the roadway which would run about $20,000 to improve. The township is in the process of getting ready to bid the work. Mr. Kiputh said the City could either participate in the project cost or take it off the township project if they wanted. Upon learning of this provision in the annexation agreement Tom Moores checked what other streets may be covered under this provision. The City could have as much as 3.33 miles ofline roads. There was some discussion about the intent and interpretation of the provision. It was suggested that Chris Hood, the legal counsel involved in working with the annexation, be asked about it. John Simola indicated that since nothing had been budgeted for this road improvement, he was suggesting that the City hold off until the City could determine the amount of streets the City was dealing with and start budgeting fuods for it. Clint Herbst stated that he had talked to Brett Holker about getting on the same page as far as overlay and road improvements to see ifthere was a possibility of bundling projects for 11 Council Minutes: 4/23/07 bidding purposes. John Simola stated the City's standard specs were different than the townships. SUSIE WOJCHOUSKI MOVED TO TABLE ANY IMPROVEMENT TO 85TH STREET FOR THIS YEAR, DEVELOP A MAINTENANCE PROGRAM AND START BUDGETING MONEY IN 2008. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Wayne Mayer requested that legal counsel look at Section 9 and provide an interpretation. 14. Review of bids for Water Tower Paintinl!: and consideration of award of bids. City Proiect No. 2007-05C. The project was advertised as both a spring construction and a fall construction project. Under spring construction the project would be completed by July 15. Five bids were received ranging from $222,885 to $392,790 with full containment costs ranging from $25,000 to $75,000. Under the spring construction bid, Classic Protective Coatings is the low bidder. For the fall construction project, bids ranged from $221,000 to $317,790 with full containment costs ranging from $1 to $60,000. Under the fall construction bid, Odland Protective Coatings is the low bidder. John Simola received an unsolicited proposed from a company wanting to provide a maintenance agreement on the tower. The cost for the maintenance program is higher than what it costs the city to do the work. John Simo1a stated that Matt Theisen and his staff have the capability of cleaning the tower on the Monte Hill as well as the 160' tower by the theater. John Simola stated the City is upgrading the tank to meet some OSHA standards. It is proposed to use KLM to certify the welding inspection. This service would cost $34,425 making the total project cost $289,450. $230,000 was budgeted for the work. Staff will be coming back to the Council to select a color scheme. No logo is proposed for the tower. BRIAN STUMPF MOVED TO APPROVE ALTERNATE BID B FOR THE WORK TO COMMENCE ON AUGUST 20, 2007 WITH COMPLETION BY OCTOBER 12, 2007 AND AWARD THE CONTRA T TO ODLAND PROTECTIVE COATINGS OF ROCKFORD, MN FOR THEIR LOW BID PRICE OF $221,001 INCLUDING THE FULL CONTAINMENT OPTION AND INCLUDING AUTHORIZATION TO CONTRACT WITH KLM FOR INSPECTION SERVICES. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 15. Review of Proposals for Public Works Needs and New Facilitv Study. RFP's were prepared for a Public Works Needs Study with the study focusing on one site and cover construction cost and phasing. The study would look at the long term needs ofthe Public Works Department. RFP's were received back from five firms. John Simola, Public Works Director and Bruce Westby, City Engineer, reviewed the five proposals and ranked them. Staff was recommending that the Council select 2-3 of the firms and interview them prior to the May 14, 2007 Council meeting with selection of a firm to be made at the May 14, 12 Council Minutes: 4/23/07 2007 meeting. Cost estimates for the study range from $20,200 to $31,000 with some firms reimbursing that fee if their firm is selected. TOM PERRAULT MOVED TO INTERVIEW THE FIRMS OF BONESTROO, ROSENE, ANDERLIK; JEA ARCHITECTS AND KODET ARCHITECTURAL FOR THE PUBLIC WORKS NEED STUDY WITH THE INTERVIEWS TO BE CONDUCTED STARTING AT 5 P.M. ON MAY 14,2007. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. John Simola would like to have a Council representative appointed to a committee to review the study and evaluate the proposal. Added Items: Finance Director: The Personnel Committee met and reviewed the situation with the Finance Director position. The City's salary range makes it difficult to find good qualified candidates. Staff talked to consultants with expertise in personnel matters and determined that the City has latitude to go outside the pay range without impacting pay equity requirements. Clint Herbst felt the pay scale would have to be adjusted. The current pay range is $60,000 to $81,000. After discussion, the Council suggested a range of $70,000 to $85,000. Tom Perrault felt the City should remain with their current pay scale. Susie Wojchouski stated the City of Monticello because of their upcoming projects needs to have an experienced and qualified financial person on board. SUSIE WOJCHOUSKI MOVED TO ADVERTISE FOR A FINANCE DIRECTOR AT SALARY RANGE FROM $70,000 TO $85,000. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION. Wayne Mayer asked ifthe $85,000 figure was locked in or if that could be adjusted. Fiber Optics: Wayne Mayer updated the Council on what is happening with the Fiber Optics Task Force. The fiber optics project is at a point where the focus of the committee will be shifting and as a result of this change in focus, the nature of the committee also needs to change. The Fiber Optics Task Force needs to become the City's Fiber Optics Committee with certain decision making authority delegated to them. The nature ofthe committee along with its responsibility and authority will be determined at a future Council meeting. 17. Approve pavment of bills for April. BRIAN STUMPF MOVED TO APPROVE PAYMENT OF BILLS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 18. Adjourn. The meeting was adjourned at 10:10 p.m. Recording Secretary 13 Special Council Meeting Mioutes: 4/30/07 MINUTES SPECIAL COUNCIL MEETING - COMP PLAN UPDATE Monday April 30, 2007 - 5 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski. Planning Commission Members: Rod Dragsten, Lloyd Hilgart, Barry Voight, William Spartz and Charlotte Gabler. Members Absent: None The joint meeting of the Monticello City Council and the Monticello Planning Commission was called to order at 5 p.m. The purpose of the joint meeting was to review what had taken place thus far with the Comprehensive Plan Update, ascertain if that met the expectations of the Council and Planning Commission and get further direction from these two entities. Rusty Fifield from Hoisington Koegler said after this meeting he would proceed to prepare an update of the Comprehensive Plan for the Council and Planning Commission to review. The Council and/or Planning Commission may direct that the Comprehensive Plan Update go back to the Task Force for review of specific items. After review is completed it would go to the public for comment. He is allowing 4-6 weeks to prepare the draft so it should go back to the Task Force in June or July. Rusty Fifield identified some key issues for discussion. One item is future growth. For planning purposes they had assumed 300 housing units per year but the housing starts have slowed to about 190 units per year. Rusty Fifield felt the city should not overestimate the growth and felt the number of housing units used should be reviewed annually. Bret Weiss from WSB & Associates added that the Comprehensive Plan needs to address the fact that there are a number lots already platted which have to be utilized before the city can look at higher end housing. The number of housing units is a figure that impacts other things like feasibility studies and determining trunk fees and SACfW AC charges. Wayne Mayer questioned why you wouldn't use actual numbers instead of an estimated housing number in feasibility studies and other areas. Wayne Mayer felt too much emphasis was being put on the 190 units. Rusty Fifield then reviewed the industrial land use. He felt you fmd out where to put the industrial land first then it is easier to determine where everything else goes. Industrial land was classified into two categories I) Business campus and 2) General industry. Rusty Fifield submitted a map showing locations for possible industrial sites. Clint Herbst asked about the site for the proposed Mills Fleet Farm. On the map that site was shown as industrial. Rusty Fifield said the impact of Mills Fleet Farm coming into the city only means the city would have less land available for general industry if it was located on an industrial site. There are other existing sites available in the city for commercial development. General industry is defined as a business involved in manufacturing or processing that does not meet the standards of the business park. Rusty Fifield stated the city needs a balanced supply ofland for general industry. The Council could make the decision not to have general industry located in the city at all. It comes down to what the city thinks an area will be like in the long term. Ollie Koropchak noted that even though there aren't covenants like in the business campus, there are design requirements for other industrial sites that general industry would have to follow. Rusty 1 Special Council Meeting Minutes: 4/30/07 Fifield stated that if the Council and Planning Commission determine different uses for the area designated for industrial land, the Comprehensive Plan would be revised to reflect that. Residential land use was looked at. The city has expressed concerned about having "move up" housing available in the city. Move up housing generally means larger units and units of better quality. He noted there is a sameness in the housing stock in Monticello. Housing stock should be balanced and match the characteristics ofthe population. It was noted in the Task Force meetings that Monticello could be the primary regional center between Minneapolis and St. Cloud. In talking about residential growth it is important not to overextend the city's utilities or financing capabilities in order to extend residential growth. Rusty Fifield stated that growth north of the Mississippi was not something the Task Force had addressed. He added that Monticello has more than enough capacity for growth on this side of the river. Rusty Fifield said he would not recommend where development should take place first as he felt that direction should be coming from the Council. He reiterated that the Comprehensive Plan has to be what the City Council and Planning Commission think Monticello will be like in the future. Rusty Fifield stated that if the city wants more control over land development then they might consider guiding the land use to a less intense use, such as residential. At the time the city is ready for development then the city would put the desired zoning in place. Even though the land use plan designates a specific use, it is the zoning that is key and courts have upheld that the zoning has precedence over the land use plan designation. There are also financial issues for consideration. If the second interchange gets built it will most likely be financed by local funds. The decision on the interchange affects growth in all parts of the community. In looking at existing residential neighborhoods it was suggested that the housing type changes only if it is because of redevelopment. The city should not encourage conversion from single family units to multiple family units and the city should try to avoid conflicting land uses. Rusty Fifield cited as an example the residences along Broadway. Converting this residential area to commercial uses would impact residential areas off Broadway. Discussion of commercial land use generated the least consensus among Task Force members. Commercial use was split into two categories; the downtown area and general commercial use. The downtown area is unique and is different from any other commercial area. TH 25 is a challenge to Monticello's downtown development and it may be that the city has to look at downtown developing away from TH 25. Although Rusty Fifield had no clear alternative to the Downtown Revitalization Plan that was adopted in 1997, he felt the downtown area had to be looked at in a different way. He suggested a good mix of uses would help make it unique. The downtown area is a commercial area that the City Council needs to give value and special attention to. The market wants commercial activity where it is easy to develop and easy to get to. The downtown area will not be convenient retailing so there needs to be something special that people will come to the downtown area for. Rod Dragsten felt the downtown was an area where the city should be working with a developer rather than doing it one storefront at a time. The downtown area is for Monticello and if it is done up well it will attract others outside the area. Susie Wojchouski felt the city should pay attention to what happens with the Monticello-Big Lake Hospital Campus. With proposed hospital expansion the city may want to look at development along East Broadway. She also asked about the apartment complexes along 7th Street and expressed the 2 Special Council Meeting Minutes: 4/30/07 view that many residents did not like to see apartments in an area that was so highly visible from major roads. Rusty Fifield ended the workshop by pointing out a couple of other variables the city needs to consider such as I) Traffic; 2) Use of the YMCA property; 3) The reality of getting a second interchange and 4) Growth north of the river. Tom Perrault brought up the city's wellhead protection plan. He indicated that the city may need to look at lining the stormwater ponds as a means of protecting the city's water resources. Another beneficial aspect of doing that would be that the stormwater ponds could be an aroenity to the area. Rusty Fifield asked that if the Council, Planning Commission or staffhad any other comments or questions that they forward them to him. The workshop session closed at 6:50 p.m. Recording Secretary 3 Special Council Meeting Minutes: 4/30/07 MINUTES SPECIAL COUNCIL MEETING BOARD OF APPEAL AND EQUALIZATION Monday, April 30, 2007 - 7 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski. Members Absent: None 1. Call to Order. Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. 2. Board of Appeal and Eaualization. Greg Kramber, Tony Rasmussen and Lori Thingvold from the Wright County Assessor's Office conducted the Board of Appeal and Equalization. Greg Kramber stated this meeting is the first step in the property tax appeal process. The next step in the process is the County Board of Appeal on June II, 2007 with the final step being the Minnesota Tax Court. Greg Kramber noted housing starts were down in 2006. Although growth was down in Wright County from that of previous years, Wright County's growth was higher than that of other county's. Wright County has been fairly stable. There were 218 sales from the period 8/1105 to 9/30/06 with a median sales ratio of89.9%. The Department of Revenue requires a ratio of90% to 105%. The State also requires the assessor to review 1/5 of the parcels each year. Greg Kramber, Wright County Assessor, provided statistics on building permit activity for 2005-2006 pointing out that $24,474,900 of new construction value was added. Clint Herbst asked if a community was outside the 90%-105% range, did the State impose a mandatory increase. Greg Kramber responded that going into the assessment review the percentage was 89.9% but after the review process it was about 92%. Shawn Weinand appeared before the Board of Appeal and Equalization. He owns 19 properties at various locations within the City of Monticello. He had a number of questions on his properties relating to valuation and classification which he would like to review with the assessor's office. Greg Kramber suggested the Council reconvene the meeting just prior to the next regular Council meeting on May 14, 2007 which would allow time for their office to meet with Mr. Weinand and review his properties. BRIAN STUMPF MOVED TO RECONVENE THE BOARD OF APPEAL AND EQUALIZATION AT 6:50 P.M. ON MAY 14,2007. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. No one else appeared before the Board of Appeal and Equalization. 1 Special Council Meeting Minutes: 4/30/07 WAYNE MAYER MOVED TO CONTINUE THIS MEETING. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary 2 MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Friday, May 4, 2007 - 6:30 a.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski. Members Absent: None Mayor Herbst called the meeting to order and declared a quorum present. The purpose of the special meeting was to consider action on a resolution relating to legislation that would restrict the development of cancer treatment centers in certain counties, including Wright County. SUSIE WOJCHOUSKI MOVED TO ADOPT RESOLUTION NO. 2007-33 OPPOSING LEGISLATION THAT RESTRICTS DEVELOPMENT OF CANCER TREATMENT CENTERS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. SUSIE WOJCHOUSKI MOVED TO ADJOURN THE SPECIAL MEETING. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary Special Council Minutes: 3/12/07 MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday March 12, 2007 - 5 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski. Members Absent: None Others Present: John Simola Public Works Director, Jeff O'Neill City Administrator, Public Works Staff 1. Call to order. A special Meeting for the purpose of reviewing Public Works facility and space needs and to discuss potential for further action was held at the Public Works Building on March 12, 2007 at 5 p.m. John Simola, Public Works Director, reviewed previous discussion relating to planning for the Public Works facility. It was noted that initial studies conducted a few years earlier had concluded that the operational demands and associated need for space had exceeded the current facility. However, further action to resolve space issues was tabled. In his review John Simola noted that equipment needed to service the City has exceeded the capacity of the building. The process of storing and moving equipment in and out of the building is made cumbersome by the lack of space. The ladies restroom is now being used to store files. There are no private offices, only cubicles, so employee evaluations or other private conversations can not take place in the building. He went on to review inefficiencies relating to operating in the tight facility and finished by saying that space needs will need to be addressed to accommodate recent and future growth. He requested that the City Council consider authorizing further study on the subject. John Simola went on to describe the original development plan for the site which was followed by general discussion. It was the consensus of the City Council that it is time to plan for developing greater Public Works building capacity. The present location may not be large enough to accommodate the long term needs. A major goal of the study will be to determine the optimum size of the site needed to support the operation which will be important information in identifying a site. Tom Bose concurred that it is important to know what our acreage needs are. Clint Herbst noted that completion of the Chelsea Road segment between West County Road 39 and 90th Street provides good transportation access to growing areas of the community. It is possible that the facility should be located Special Council Minutes: 3/12107 somewhere in the vicinity of Chelsea Road or perhaps a portion of the Chadwick property would make a good site. Outlot A of Country Club Manor was discussed as a site. Susie Wojchouski stated that the prime freeway frontage at this location may make this site better suited for other uses. Brian Stumpf noted the emerging needs ofthe Fire Hall, City Offices and potential Police Department at some point in the future. The study needs to tie all the needs together. Susie Wojchouski asked if it would be possible to stage further development at this site in order to lower costs. John Simola noted that this was the original plan but it appears that the site is simply not big enough, especially if the property across County Road 39 is intended for residential development. Clint Herbst noted the problem associated with further investments at the existing site. He was concemed that site would be difficult to sell or re-use in the future. Tom Perault suggested that the City consider converting the existing facility into a fire hall to accommodate the growing needs of the Fire Department. It was the consensus that this concept should be reviewed soon with the Fire Department. The City Council thanked Public Works employees for attending the meeting and providing input on the need for further study of Public Works facility needs. After discussion it was the consensus ofthe group that the need exists for further study of Public Works space needs and the authorization to proceed with selecting an architect should proceed as soon as possible. Recording Secretary Council Agenda: 5/14/07 SA. Consideration of auurovinl!: new hires and deuartures for MCC. (JO) A. REFERENCE AND BACKGROUND: The Council is asked to ratify the hiring and departures of employees that have occurred recently at the MCC. It is recommended that the Council officially ratify the hiring/departure of all new employees including part-time and seasonal workers. B. ALTERNATIVE ACTIONS: 1. Ratify the hiring/departures of the employees as identified on the attached list. C. SUPPORTING DATA: List of new employees. Name Julia Schaffer Name NEW EMPLOYEES Title Concessions Department MCC TERMINATING EMPLOYEES Reason Department Hire Date Class 4/14/07 Temp Last Day Class employee councillist.xls: 5/1/2007 Council Agenda: 5/14/07 5B. Consideration of resolution apurovinl!: charitable l!:amblinl!: license for Monticello Lions Qlli1. (J 0) A. REFERENCE AND BACKGROUND: The Monticello Lions Club is requesting approval to conduct charitable gambling operations at Chatter's, a new restaurantlbar at 4181 Cedar Street. The Lions Club currently has charitable gambling activities at Hawk's Sports Bar & Grill, Blue 360 Sports Bar and River City Lanes. Prior to the State Gambling Control Board issuing a license, the City Council must pass a resolution approving or denying the application. Staff is not aware of any reason why Council would not allow the state to issue this license. B. ALTERNATIVE ACTIONS: 1. Adopt a resolution authorizing the State Gambling Control Board to approve the charitable gambling license to the Monticello Lions Club to conduct charitable gambling activities at Chatter's at 4181 Cedar Street. 2. Do not approve the resolution. C. STAFF RECOMMENDATION: City Administrator recommends the resolution authorizing the issuance of the charitable gambling license be adopted. D. SUPPORTING DATA: Resolution CITY OF MONTICELLO RESOLUTION NO. 2007-34 RESOLUTION AUTHORIZING THE ISSUANCE OF A GAMBLING LICENSE WHEREAS, the Monticello Lions Club has submitted an application to the City Council of Monticello for a charitable gambling license to conduct gambling activities at Chatters located at 4181 Cedar Street; WHEREAS, the Council is not opposed to the gambling license being issued by the State Gambling Control Board. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the application by the Monticello Lions Club for a charitable gambling license to conduct gambling activities at Chatters, 4181 Cedar Street is hereby approved and the State Gambling Control Board is authorized to process the application.. Adopted by the City Council this 14th day of May, 2007. Clint Herbst, Mayor ATTEST: Jeff O'Neill, City Administrator Council Agenda: 5/14/09 SC. Consideration of resolution aDDrovinl!: renewal of charitable l!:amblinl!: license for American Lel!:ion Post #260. (JO) A. REFERENCE AND BACKGROUND: American Legion Post #260 is requesting approval ofthe renewal for their charitable gambling license at their facility located at 304 Elm Street. Along with the renewal request they have submitted a [mancial report covering their lawful expenditures for their past license period. Prior to the State Gambling Control Board issuing a license, the City Council must pass a resolution approving or denying the application. Staff is not aware of any reason why Council would not allow the state to issue this license. B. ALTERNATIVE ACTIONS: 1. Adopt a resolution authorizing the State Gambling Control Board to approve the renewal of the charitable gambling license for American Legion Club #260 to conduct charitable gambling activities at their facility at 304 Elm Street. 2. Do not approve the resolution. C. STAFF RECOMMENDATION: City Administrator recommends the resolution authorizing the issuance of the charitable gambling license be adopted. D. SUPPORTING DATA: Resolution Financial Report CITY OF MONTICELLO RESOLUTION NO. 2007-35 RESOLUTION AUTHORIZING THE ISSUANCE OF A GAMBLING LICENSE WHEREAS, American Legion Club #260 has submitted an application to the City Council of Monticello for renewal of a charitable gambling license to conduct gambling activities at the American Legion Club located at 304 Elm Street; WHEREAS, the Council is not opposed to the gambling license being issued by the State Gambling Control Board. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the application by the American Legion Club #260 for renewal of a charitable gambling license to conduct gambling activities at 304 Elm Street is hereby approved and the State Gambling Control Board is authorized to process the application.. Adopted by the City Council this 14th day of May, 2007. Clint Herbst, Mayor ATTEST: Jeff O'Neill, City Administrator MONTICELLO AMERICAN LEGION POST 260 (License # 00672) YEARS ENDED DECEMBER 31, 2006 AND 2005 2006 Amount $ 1,577,782 1,315,378 262,404 48,279 32,151 16,128 40,500 29,459 11,041 289,573 139,502 150,071 2005 Amount REVENUES Pull-Tab Receipts Less: Prizes Awarded Net Revenues - Pull-tabs $1,883,802 1,580,444 303,358 Bingo Receipts Less: Prizes Awarded Net Revenues - Bingo Paddlewheel Receipts Less: Prizes Awarded Net Revenues - Paddlewheel 88,500 65,410 23,090 GROSS PROFIT 326,448 ALLOWABLE EXPENSES 148,147 INCOME BEFORE LAWFUL PURPOSE AND BOARD APPROVED EXPENDITURES 178,301 LAWFUL PURPOSE EXPENDITURES Gambling Taxes: State Net Receipts Tax State Combined Receipts Tax State Board Fees State Ideal Gambling Taxes Ideal Tax Refund on Unsold Tickets State License Fees Federal Gambling Taxes Real Estate Taxes Total Gambling Taxes Audit Fee Utilities Program Expenditures Ideal Tax Refund Expenditures Total Lawful Purpose Expenditures 2,309 47,541 1,667 32,686 (7,179) 600 5,630 14,174 97,428 3,225 20,192 25,60i2 DenGh:::\1':' 3,100.5 149,547 1,963 60,374 1,972 38,903 (7,085) 600 6,041 18,956 121,724 3,075 18,995 56,441~ DenCi +Iell 5 6,180~ 206,415 \XVl c( t \OV15 Vvlu d-e ll\+tll \\ YV') Cl1 ~l Ct' \ \ () \ If\ -(28,114) "I nc,!" _ Sl,,, c~ lCir~").-, C :Y- v . u . ,7- c'j [7/ v I,j .) c ,!,I c 0- / ;JOC ,~- 09 ro I~J S REVENUES IN EXCESS (DEFICIT) OF EXPENSES ~ 524 Ul Z o i= <( 0:: W c.. o " ~I ...J JIl :;; <( " :;; o 0::, . ,,-Q ~.~ <( :;; Ul Z .. 000 -0 f-- <(0:: ZW.. 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W o <c :!: CIl Z "0 QgE 1-- <cll:: Z W., oD-Z owQ CIlI- Z<C WN u- _Z ...J<c ll::(!) oll:: ...0 s;;: ~ 0 ~ +~ , ---~J CZj _~ I . / =---' ~ ~----'> ~~ .s;:::.. c- -~ {J 06 b$=<" c--~. ~ . ------ [)cJ .;::5 :E I.Jl ~:r- .r::::J. g .=t ~ <::> .<:::::::: 0' + ~ cd ~ .E Council Agenda: 5/14/09 5D. Consideration of request bv the Initiative Foundation for a monetary contribution. (JO) A. REFERENCE AND BACKGROUND: Attached is a letter the City has received from the Initiative Foundation requesting that the City consider a donation in support of their organization in the amount of$2,000 for the year 2007. Their letter outlines their accomplishments in the 14 county central Minnesota area which includes Wright County. Although in 2002 the Council approved a $1,000 contribution, the City has not in the recent past made a regular contribution to this organization. Nothing was budgeted in 2007 for a contribution to the Initiative Foundation. B. ALTERNATIVE ACTIONS: I. Approve a contribution of $2,000 to the Initiative Foundation. 2. Do not approve a contribution at this time. C. STAFF RECOMMENDATION: In the past the Council took the position that since many of the activities sponsored by the Initiative Foundation involve grants to various types of non-profit organizations it might be more appropriate for the contribution to come from the counties on behalf of its residents rather than the individual cities. The question is whether this is still the view of the present Council, if so staff would recommend not making a financial contribution at this time. D. SUPPORTING DATA: Copy of April 20, 2007 letter requesting contribution. Jeff O'Neill City of Monticello 505 Walnut Ave Ste I Monticello, MN 55362-8822 .'0 INITIATIVE FOUNDATION April 20, 2007 Dear Mr. O'Neill, Greetings from the Initiative Foundation! The purpose of this letter is to follow up on our request for support from the City of Monticello for calendar year 2007, in the amount of $2,000. If this amount or another amount has been approved, please consider this letter a request for payment. The Initiative Foundation was created for the express purpose of providing sustainable economic and community development support in the wake of devastating econoniic conditions ofthe mid-1980's. It was built on the premise that if you provide central Minnesota's citizens with the right training, technical support, and assistance, they can apply their knowledge of local issues and opportunities. . . as well as their talent and capacity for hard work. .. to create healthy communities in which to live, work and grow. For over twenty years now that original thesis has held true-and as our region grows and changes, so too does the Foundation's program offerings and response to new threats and new opportunities. Please consider what the Initiative Foundation has accomplished since 1986- . Trained over 3,550 Central Minnesota citizens to better serve their respective community, lake or river association, or nonprofit organization . Distributed over $17 million in grants . Made 766 Economic Development Loans totaling $29 million, and leveraged an additional $158 million in private investment by our participation . Helped create 5 local Community Funds which partner with us to provide local citizens a place to leave legacy gifts and make investments in their own communities In Wright County alone we have- . provided $3,568,246 in grants and loans; . leveraged an additional $18,668,635 in private investment; . helped create or retain 884 jobs; . engaged citizens in our capacity-building programs In these challenging times, we truly hope you appreciate how an investment in the Initiative Foundation is truly an investment in your community and the people you serve. Thank you in advance for supporting our mission and work. son Vice President for Donor Services cc: Mark Lease, Donor Services Officer 405 Flit;;]" STREET SF. PS: The Initiative Foundation will be sending a 'f8 Budget Request to the City by mid-June 2007. ~lH LITTl.r'; E"LLS. HI'.: 563-15 W\>'Vi.Ir-O\::-<D.OHG PHONE: <320.632.9255 E,,-,,-: 320.b;_~2.9258 Minnesota ;7nitiati"l/c ;;z;,undation<; 20 YEAnSOFMAK,N""'NNESOTA GREATER .t:QUAL OPPOHTU.'HI'Y LENDER. PROVIDP.R ""I) EI-ll-'LOYER. City Council Agenda - 05/14/07 5G. Consideration to review and accent the 2006 Year-End EDA Financial Statements. Activity Renort. and 2007 Pronosed Budl!et. (O.K.) A. Reference and Backl!round: This item is presented to comply with City Ordinance Amendment No. 172, Section 2-3-6 (A), "The Authority shall prepare an annual budget projecting anticipated expenses and sources of revenue;" and (B), "The Authority shall prepare an annual report describing its activities and providing an accurate statement of its financial condition. Said report shall be submitted to the City Council each year." The financial reports were prepared by EDA Treasurer Wolfsteller, Senior Accountant Mastey, and EDA Executive Director Koropchak. At the annual meeting of April 24, 2007, the Economic Development Authority (EDA) accepted the year-end reports and amended budget. The EDA voted to reimburse the Liquor Fund, $1 00, OOOfor Budget Year 2008. with the funds to be transferred to the debt servicefimds of the City. Of the initial $383,000 Liquor Fund, the EDA has elected to reimburse the City a total of$327,891 and disbursed DMRF grants in the amount of$55,109. The EDA has no further obligations to the Liquor Fund. All Greater Monticello Enterprise Fund (GMEF) loan pay backs are current. You will note on the Balance Sheet, the EDA cash and investment balance as of December 31, 2006, is $815,355.45 with total assets and liabilities/equity of over $1.5 million. Two GMEF loan balloon payments were paid in 2006. One GMEF Loan was approved in 2006; however, not disbursed until 2007. The 2007 Cash Flow Projection includes disbursement of one GMEF loan and a reimbursement of $1 00,000 to the Liquor Fund. No GMEF balloon payments are due in 2007. Other sources of funds available for use by the EDA, in addition to the EDA cash and investment balance, are the loan pay backs from the MIF State/City/UMC Loan and the MIF Federal/City/TCDC Loan. The 2006 year-end combined balance of these two funds is $460,997.24. These funds are available to businesses for the purpose to create jobs at liveable wage-levels. The balloon payment on the MIF/Federal/City/TCDC Loan is due June 2007 and the MIF State/City/UMC Loan is due March 2008. Per the Ordinance, the EDA submits to the City Council a copy ofthe EDA 2006 Year-End Balance Sheet; Statement of Revenues, Expenditures, and Changes in Fund Balance for the Year; Annual Activity Report; and 2007 Cash Flow Projections (Budget) for review. 1 MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY GREATER MONTICELLO ENTERPRISE FUND REVISED STATEMENT STATEMENT OF REVENUES AND EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2006 REVENUES: Interest Income - Notes Investment Interest Income Loan Fees Revenue Reimbursable Fees Revenue TOTAL REVENUES: $ 20,325.12 $ 56,689.50 $ $ $ 77,014.62 $ 1,144.00 $ $ $ 201.08 $ 1,345.08 $ 75,669.54 $ 1,459,675.53 $ 1,535,345.07 EXPENDITURES: Legal Fees Professional Fees Service Fees Misc I Reimbursable Fees Revenue TOTAL EXPENDITURES: EXCESS OF REVENUES OVER EXPENDITURES: FUND BALANCE - Beginning of Year: FUND BALANCE - End of Year: City Council Agenda - 05/14/07 If a council member has questions of the year-end reports, please remove from the consent agenda; otherwise, the EDA requests the City Council make a motion to accept the EDA year- end reports. B. Alternative Action: 1. A motion to accept the 2006 Year-End EDA Balance Sheet; Statement of Revenues, Expenditures, and Changes in Fund Balance; Activity Report; and 2007 Cash Flow Projections as presented. 2. A motion to deny acceptance of the 2006 Year-End EDA Balance Sheet; Statements of Revenues, Expenditures, and Changes in Fund Balance; Activity Report; and 2007 Cash Flow Projections as presented. C. Recommendation: The City Administrator and Economic Development Director recommend Alternative No.1 D. SUDDortinl!: Data: Copy of the Year-End Statements, Activity Report, and 2007 Cash Flow Projections for the EDA 2 . MONTICEllO ECONOMIC DEVELOPMENT AUTHORITY GREATER MONTICEllO ENTERPRISE FUND REVISED STATEMENT BALANCE SHEET DECEMBER 31, 2006 ASSETS Cash & Investments $ 815,355.45 Notes Receivable - T J Martin Notes Receivable - GWJ, LLC Notes Receivable - UMC Notes Receivable - Tapper's 3 Notes Receivable - WSI Notes Receivable - Tapper's 4 $ $ $ 169,668.08 $ 36,563.59 $ 321,386.16 $ 192,371.79 $ 1,535,345.07 TOTAL ASSETS: FUND EQUITY Fund Balance Reserved for Economic Development Participation Loans $ 1,535,345.07 $ 1,535,345.07 TOTAL LIABILITIES AND FUND EQUITY: MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY GREATER MONTICELLO ENTERPRISE FUND (GMEF) 2007 CASH FLOW PROJECTION BEGINNING CASH BALANCE, January 2007 RECEIPTS Appropriations, Expected - MIF Fed or State Notes Amortization Payments - Tapper Inc. Muller Theater SMM, Inc. Aroplax Corp. Custom Canopy, Inc. Standard Iron Vector Tool Tapper's II SELUEMED T.J. Martin Mainline Distrib. Aroplax Corp. II TCDC IRTI EDMA VisiCom UMC ( $ 1 , 084 . 33 Mo.) 3 - 0 8 Tapper 111($524.76 Mo.) 5-08 WSI ($1,483.49 Mo) 6-09 Tapper Holdings ($1,417 Mo.) 7-10 Karlsburger Foods($1,714.83 Mo.) Interest Income - Investment (est.) Loan Fees Loan Fees Other Miscellaneous TOTAL RECEIPTS TOTAL BEGINNING BALANCE AND RECEIPTS EXPENDITURES GMEF Loans - Karlsburger (2-07) Other Re-payment to Liquor Fund 2006 (Budget year 2007) Re-payment to Liquor Fund 2007 (Budget year 2008) Legal Fees Miscellaneous TOTAL EXPENDITURES EXPECTED CASH BALANCE, December 2007 $ -0- $ $ $ $ 3-12 $ $ $ $ $ -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- 13,011. 96 6,297.12 17,801.88 17,004.00 15,433.65 50,000.00 200.00 3,000.00 -0- $ 200,000.00 $ 100,000.00 $ 80,891.00 $ 100,000.00 $ 3,000.00 $ 1.000.00 $ 815,355.45 $ 122.748.61 $ 938,104.06 $ 484.891.00 $ 453,213.06 2006 ECONOMIC DEVELOPMENT AUTHORITY ACTIVITY REPORT MEETING DATE SUBJECTS April 25, 2006 Motion to approve EDA Officers for 2006: President Bill Demeules Vice President Barb Schwientek Treasurer Rick Wolfsteller Assistant Treasurer Ron Hoglund Secretary Ollie Koropchak Motion to approve transferring reserve Liquor Funds in an amount of $80,891 for bonded indebtedness. Motion to accept the draft copy of the EDA 2005 Year-End Financial Statements with the adjustment for the Liquor Fund transfer and Activity Report for submission to the City Council in May. Motion to accept the Business Subsidy Criteria and Bylaws of the EDA as written (no amendments.) September 5, 2006 Reviewed the revised EDA 2005 Financial Statements. Reviewed the preliminary GMEF Loan Application from Karlsburger Foods, Inc. Motion to approve GMEF Loan No. 025 for Karlsburger Foods, Inc. in the amount of $200,000, with terms of7 years, interest rate of 6.25% and a loan fee of$200. Collateral, guarantees and other condition requirements to be determined and prepared by the EDA Attorney. Approval is subject to public hearing on the Business Subsidy, lender line of credit, and council ratification of EDA action. A motion to call for a public hearing on September 19,2006 at 4:00 p.m. for the proposed business subsidy to Karlsburger Foods, Inc 1 2006 EDA Activity Report continued September 19, 2006 Public Hearing on Business Subsidy for Karlsburger Foods, Inc. A motion to approve the Business Subsidy Agreement and to authorize entering into the Loan Agreement between Karlsburger Foods, Inc. and the Monticello EDA with the approved amendment: to the loan terms: Fifteen year amortization with balloon payment in year five. 2 Council Agenda: 5/14/07 5E. Consideration of establishin olic for reimbursement for cell hone minutes for Ci Council and formal approval of cell phone policv. (JO, PM) A. REFERENCE AND BACKGROUND: In an effort to cut costs, city staff incorporated a citywide cell phone policy, which was put into practice January 2006. It is estimated that the Cell Phone policy saves the city an estimate of $5,000.00 per year. Under the new policy, phone use and contracts were consolidated and cost per minute was reduced drastically. The Cell Phone Policy was an internal document that is being requested for ratification at this time. City Council is asked if there is a desire to establish policy for allowing City Council mernbers to be reimbursed for minutes they are using on their personal cell phones, related to city business. In our research of the matter, the City Council is free to consider making this policy change affecting the current City Council because reimbursement of cell phone use is not considered to be a change in compensation. As you may know, changes in compensation can only be considered prior to an election and thus applied to a City CounciL Please note that according to our research with the League of Minnesota Cities, there are cities that reimburse City Council Members for use of private cell phones. The cell phone policy has been updated to incorporate this change; section 6 of the policy now addresses council reimbursement. To summarize: any council member will be reimbursed up to their allotted minutes (currently 100 for council members and 150 for mayor) based on the city's current pricing ($0.10 per minute); provided they submit a copy of their personal cell phone bill and complete a reimbursement form. Under the policy, there is no requirement that the Council Member individually track each phone call made or received relating to city business. Rather, the Council Member is reimbursed at a flat rate equal to what the City pays for air time based on the estimated use of 100 minutes for council, and 150 minutes for mayor per month. The estimated cost to the City for providing this level of reimbursement for five members of the City Council would be $55.00 per month, or $660.00 per year. B. ALTERNATIVE ACTIONS: 1. To ratify the City's cell phone policy which includes establishment of a reimbursement policy for the Mayor and City CounciL 2. To not approve the City's cell phone policy. 3. Motion to table the item pending further review. In the event the policy results in significant discussion or concern, Council could elect to table the item accordingly for further review. Council Agenda: 5/14/07 C. STAFF RECOMMENDATION: The City Administrator recommends alternative number one. Having the ability to contact a Council Member via cell phone enhances communications between City Staff and Council and thus enhances organization efficiency. Given the benefit to the City resulting from cell phone communication access to City Council Members, it would appear reasonable that the City would reimburse Council Members for this expense. D. SUPPORTING DATA: Copy of the City's current cell phone policy. CITY OF MONTICELLO CELLULAR TELEPHONE POLICY PURPOSE: The intent of this policy is to provide guidance as to acceptable and unacceptable practices of cellular phone usage; as well as which positions the city deems necessary to carry cellular phones as a requirement for more efficient productivity. POLICY: 1. The City of Monticello will carry and pay for one cellular phone plan. This plan will be reviewed on an annual basis, to determine that it best fits the needs of the positions within the city that are required to carry cellular phones. 2. If cellular phones or other equipment (i.e. Chargers, cases, batteries, etc.) are authorized, the city will cover these costs, provided the employee/position is on the city's plan. All equipment the city has paid for is property of the City of Monticello, and must be returned to the city if an employee has been terminated. 3. If cellular equipment is lost or stolen, the employee must notify their supervisor immediately. 4. Each position deemed necessary to carry a cellular phone will be allotted a pre- determined amount of minutes based on their position with the city. The allotted amount for each position will be reviewed on a regular basis, and changed as necessary. If an employee goes over this allotted amount of minutes, they will be required to reimburse the city for all personal minutes used that month, at the current per-minute rate based on the plan. If an employee goes over the allotted amount of minutes due to all work related calls, the city will cover the overages, as well as re- examine the allotted minutes for that position. 5. If an employee, in a cell-phone required position, chooses not to use the city's plan, that employee can choose to carry his or her own personal plan. The employee is required to have the plan in their name. They must pay for their plan and equipment they may need. The employee can submit a request for reimbursement, along with a copy of their cell phone bill, and will be reimbursed only up to the current amount that position is allotted on the city's cell phone plan. (I.e. if a position is allotted 400 minutes through the city, at a monthly cost of $20.00, they will only be reimbursed up to $20.00, regardless of their monthly contract amount). 6. Members of City Council and Mayor are not eligible to be on the city's plan; they will be, however, allotted a pre-designated amount of minutes to be reimbursed C:\Documents and Settings\dawn.grossinger\Local Settings\Temporary Intemet Files\OLKB3\Cell phone policy.doc 1 through the city. These minutes are based on the assumption that city officials are required to use their personal cell phones for City business. If a councilmember or mayor chooses to be reimbursed, they are required to have the cell phone plan in their name. They must pay for their plan and equipment. The city official can submit a request for reimbursement, along with a copy of their cell phone bill, and will be reimbursed only up to the current allotted amount. 7. If an employee has been pre-authorized to add additional features to their cell phone, the city will cover the costs of the specified features in addition to their allotted minutes. For example: If a position is allotted 400 minutes through the city, at a monthly cost of $20.00, plus they have been authorized an additional feature for $20.00 per month, they will only be reimbursed up to a total of $40.00. 8. The City Administrator will determine which positions the city will provide cellular phones for. This will be based on the position's responsibilities, need to be contacted on short notice and at times other than standard working hours, availability to land lines, and increased productivity. 9. Any communication that violates applicable laws & regulations is forbidden. 10. When an employee has been terminated, the supervisor is responsible for collecting all cellular equipment from the employee that the city owns. 11. Employees are not permitted to access or download online features (i.e. ring tones) to city owned cellular phones. These features can expose the cell phone to viruses. 12. The following positions are deemed necessary to carry cellular phones for the city of Monticello: POSITIONS MONTHLY ALLOTTED MINUTES City Administrator 300 Deoutv City Administrator 700 Econ. Develonment Director 200 Public Works Director 400 Animal Control 400 Water Department - Suoervisor 800 Water Deot. - Emniovee #1 300 Water Dent. - Emplovee #2 300 Water Deot. - Emoiovee #3 300 Streets Department - Suoervisor 400 Streets Dent. - Emolovee #1 200 C:\Documents and Settings\dawn.grossinger\Local Settings\Temporary Internet Files\OLKB3\Cell phone policy. doc 2 . ---.-.._-- Citv Insoector #1 900 Citv Insoector #2 900 Building Inspections - Supervisor 600 Bldg. Inspections - Employee #1 350 Bldg. Inspections - Employee #2 350 Bldg. Inspections - Employee #3 350 Parks Deoartment - Suoervisor 400 Parks Deoartment 400 Parks Deol. - Emoloyee #1 200 MCC Director 450 MCC - Event Coordinator 200 MCC - Proaram Coordinator 100 MCC - Front Desk 100 MCC - Lead Custodian 500 MCC - Blda. Custodian 100 Citv Council Member 100 Mavor 150 10,450 POLICY APPROVED: DATE: C:\Documents and Settings\dawn.grossinger\Local Settings\Temporary Internet Files\OLKB3\Cell phone policy.doc 3 Council Agenda: 5/14/07 SF. Consideration of renewal of license al!:reement allowinl!: use of ril!:ht-of-wav for Crostini Grille. (JO) A. REFERENCE AND BACKGROUND: In 2006 the Council approved a request by Crostini Grille to have an enclosed patio that would encroach into the street right-of-way. Later in the year the Council approved a change in the agreement. Initially the structure was to be in place from April 15th through October 15th. The Council moved to allow the structure to remain up year round with the skirting to be removed after the holidays. In granting the approval the Council did express concern about the structure impeding snow removal in the area. The City has had a chance to evaluate the presence of the structure in the right-of-way over the past snow removal season and the Public Works Director indicated there did not appear to be problems with the structure as far as snow removal. B. ALTERNATIVE ACTIONS: 1. The Council could approve the license agreement which has been revised to reflect the Council action of September 25, 2006 which allowed the structure and skirting to be up through the holiday season and thereafter only the structure would remain. This action was contingent upon Crostini Grille signing an agreement indicating the City would not be liable for any damage to the structure as the result of snow removal operations. 2. Do not approve the revised license agreement. 3. The Council could approve the revised license agreement with further modifications as specified by the City Council. C. STAFF RECOMMENDATIONS: City staff is not aware of any issues that resulted from of the license agreement allowing the structure to encroach into the right-of-way of Locust Street. Unless the Council has concerns about continuing to allow the encroachment into the right-of-way, it is the recommendation of the City Administrator that the license agreement with Crostini Grille be allowed to continue. D. SUPPORTING DATA: Revised license agreement. Council Minutes relating to previous action on the encroachment. WITNESSETH LICENSE AGREEMENT AGREEMENT made this _ day of ,2007, by and between the City of Monticello, a Minnesota municipal corporation ("City") and Crostini, LLC, a Minnesota limited liability company, dba Crostini Grille (collectively "Crostini"). WHEREAS, the City is the owner of the boulevard on Locust Street dedicated for public use and adjacent to Crostini Grille located at 254 West Broadway, Monticello, Minnesota ("Subject Property"). WHEREAS, Crostini desires to obtain a license over and across a portion of the Subject Property to install and use as a seasonal patio eating enclosure. WHEREAS, the City Council on May 8, 2006 authorized the granting of the license and on September 25, 2006 amended said license agreement subject to the terms and conditions hereinafter described. NOW THEREFORE, the parties agree as follows: 1. The City does hereby grant to Crostini a non-exclusive, non-transferable license to construct a seasonal patio seating enclosure over a portion of the Subject Property as depicted in the diagram attached hereto as Exhibit A, leaving between six to seven feet of public sidewalk width. 2. Crostini's use of the seasonal patio seating enclosure shall be allowed from April 1 5th through the holiday season (January 1st). After which time the patio skirting will be removed but the patio structure will remain intact year round. 3. Crostini agrees to indemnify and save harmless the City from and against damages to said seasonal patio seating enclosure as a result of City snow/ice removal operations. 4. Crostini agrees to indemnify and save harmless the City from and against all liability, damages, penalties, judgments, or claims of whatever nature arising from injury to person or property sustained by anyone arising out of Crostini' s use and occupancy of the seasonal patio seating enclosure and will, at Crostini's own cost and expense, defend any and all suits or actions (just or unjust) which may be brought against the City or in which the City may be impleaded with others upon any such above-mentioned matter, claim, or claims. This indemnity and hold harmless agreement will include indemnity against all costs, expenses, and liabilities incurred in or in connection with any such claims or proceedings brought thereon and the defense thereof. 5. This license shall renew automatically unless either party gives the other party 30 days notice in writing of their intent to terminate the license agreement. IN WITNESS WHEREOF, the undersigned have executed this Agreement the day and year first above written. ......- CITY OF MONTICELLO By: Clint Herbst, Mayor By: Jeff O'Neill, City Administrator CROSTINI, LLC By: Chief Manager .;.:"~>.. -- 1-\ ,-, ~r- ~iil ,,'" '" "\ ,~ ~ ...ao\ ",.... ~ ~ 1 .' ~ "UT.Z m" ;:~ ~ ;, 00\ . ~ h.: - m ", J'f: ~~ J -J ~~ '" N .. ."YA ~I'~ !:..E l'i",'" C")6~ 9",.. ",0," ,",,'" r.;~a cl';:;l '>C' ~ ~~~ jZ . '" /! '" c ~ r; .. Z :: i '11 2 ~ .. ~ '" 'll Z II '" '" z z o '" :t m r- m ~ :! o z z o <n n ~ " ~ ~ z " '" ~ ~ 5 z " o z '" l ;; z " !; ... .;. ~ o z o ;: q '! "! Council Minutes: 9/25/06 #9 AS #5L AND AGENDA ITEM #11 AS #5M. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration of items removed from the consent al!enda for discussion. #5C: Request by Crostini Grill for extension of time frame for license agreement for encroachment into right of way: Bob Hellman from Crostini Grille indicated they would like to keep the patio structure up year round and remove the skirting. The only part of the structure that would remain up would be the poles and the roof. It is their plan to use the structure for various activities over the holiday season (Thanksgiving through New Years). There is 8 Y2 feet of sidewalk beyond the patio structure. Glen posusta noted his concern about whether the . structure was designed to handle a snow load and because of the structure's slanted roof if there was any danger of snow sliding off the roof onto the sidewalk. Bob Hellman indicated the structure was built for a snow load and he didn't anticipate the slope of the roof was so great as to cause the snow to slide off. Wayne Mayer stated while initially he was skeptical of having the patio structure encroaching into the right of way, it seems to have worked out well. He did caution that they would need to monitor the snow plowing in the area for snow being thrown up in the sidewalk area. WAYNE MAYER MOVED TO EXTEND THE TIME FRAME FOR THE LICENSE AGREEMENT WITH CROSTINI GRILLE THROUGH THE HOLIDAY PERIOD WITH THE UNDERSTANDING THAT THEY WILL SIGN AN AGREEMENT INDICATING THE CITY WOULD NOT BE HELD LIABLE FOR ANY POTENTIAL DAMAGE AS A RESULT OF SNOW REMOVAL AND ALLOW THE STRUCTURE TO REMAIN WITH SKIRTING REMOVED. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #5G Ordinance Amendmentfor Chapter 11 of the zoning ordinance regulating the B-1 (Neighborhood Business) District: Kimberly Holien from Northwest Associated Consultants reviewed the proposed ordinance amendment. The B-1 District allows for commercial use embedded in a residential district to service the surrounding neighborhood. However the Planning Commission did not feel that in a small community a business would only be serving the immediate neighborhood. The City currently has one B-1 site. Wayne Mayer questioned the chapter and sections of the ordinance that were referenced in the amendment. Kimberly Holien noted the references were general and that they could be eliminated from the ordinance if that was what the Council wanted. City Attorney, Tom Scott concurred that the ordinance amendment didn't have to reference a particular section. Clint Herbst stated he was not in favor of any business in a residential neighborhood. The proposed ordinance came up in the Planning Commission's consideration of a request for the property at 530 West Broadway. The property which is used as a business is currently a legal non-conforming use. Any new use of this site would require a conditional use permit. TOM PERRAULT MOVED TO APPROVE THE AMENDMENT TO CHAPTER 11 OF THE MONTICELLO ZONING ORDINANCE WITH THE CHAPTER AND SECTION REFERENCES REMOVED REGULATING THE B-1 (NEIGHBORHOOD BUSINESS) DISTRICT. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. , . ./" e e e Council Agenda - 5/806 ~ #5M Encroachment into riffht-of-wav for Crostini's Grille: Crostini's Grille is proposing an enclosed patio to be located on Locust Street right-of-way. Tom Perrault questioned the time frame for allowing the encroachment to exist stating that right-of-way is normally used for snow storage and questioned whether having the structure in the right-of-way would complicate the snowplowing operations in that area. Wayne Mayer agreed and stated that while he did not mind having the tables set up he did question whether the structure should be in place before mid-May and up any longer than the end of October. Bob Hillman owner ofCrostini's Grille stated they are proposing to erect an aluminum structure in early April. After October they would remove the canvas skirting and leave only the aluminum structure. This structure would be decorated for the holidays and they are looking at making it a focal point for the downtown area over the holidays. Glen Posusta asked if the City would be held harmless for any damage that they may suffer as a result oftheir encroachment into the right-of-way. Wayne Mayer said while he encouraged happenings in the down town area, he didn't like the time frame that was proposed. Tom Perrault suggested that ilbe tried one year and then evaluated. The Council questioned if the sidewalk on Locust Street was on the grid system and who was responsible for snow removal. John Simola, Public Works Director indicated the property owner is responsible. Glen Posusta was concerned about the City being held harmless if the structure collapsed or there was other damage. It was indicated the property owner has the responsibility to insure the structure. Wayne Mayer noted that the sidewalk on Locust street is wider so the encroachment might not be as bad of a problem. However, he noted other locations along Broadway where tables, etc. are being placed in the right-of-way. City Attorney Tom Scott said this case involves a structure which is somewhat unique and that is why the City is looking at an agreement. Most cities have something in their ordinance that allows placement of tables in the right-of-way area so long as pedestrian traffic is not impeded. For something like tables, an ordinance would be a more effective means of handling that than an encroachment agreement. Jeff O'Neill stated the City's ordinance does not allow encroachment into the right-of-way unless there is some kind of agreement. BRIAN STUMPF MOVED TO ENTER INTO A LICENSE AGREEMENT WITH CROSTINI GRILLE FOR THE USE OF THE PUBLIC RIGHT OF WAY OF LOCUST STREET FOR THE PURPOSE OF A SEASONAL SEATING ENCLOSURE FOR THE PERIOD OF APRIL 15TH THROUGH OCTOBER 15TH. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED WITH CLINT HERBST AND TOM PERRAULT VOTING IN OPPOSITION. Clint Herbst stated he felt the City should allow more leeway with the time frame. Tom Perrault felt it should be approved for a one year period and then reevaluated. 7. Consideration of authorizinz nezotiations for the purchase of properlY at 413 West 6tn Street. City Administrator, Rick W olfsteller informed the Council that the City had been approached by the property owner west of the Kevin Tracy property near the National Guard storage area to see if . 20 Council Agenda: 5/14/07 5H. Consideration of approval of on-sale liquor license and Sundav Liquor License for Chatters. (10) A. REFERENCE AND BACKGROUND: Chatters, a new restaurant located at 4181 Cedar Street as submitted an application for an on- sale liquor license and Sunday liquor license. The Council set the fee for the on-sale liquor license at $3,750 per year and the Sunday license at $200. B. ALTERNATIVE ACTIONS: I. Approve the request for an on-sale liquor license and Sunday liquor license for Chatters, 4181 Cedar Street contingent upon payment of the license fee covering the period of June I, 2007 through June 30, 2007 and submittal of certificate of insurance. 2. Do not approve the liquor license request. C. STAFF RECOMMENDATION: It is the recommendation ofthe City Administrator that the on-sale liquor license and Sunday liquor license be granted to Chatters for the period June I, 2007 through June 30, 2007 contingent upon payment oflicense fee. D. SUPPORTING DATA: License Application Certificate of Insurance Certification of an On Sale Linuor License. 3.2% Linuor license. or Sundav Linuor License Cities and Counties: You are required by law to complete and sign this form to certify the issuance of the following liquor license types: 1) City issued on sale intoxicating and Sunday liquor licenses 2) City and County issued 3.2% on and off sale malt liquor licenses Issuing Liquor License ?Y1OIJT1c..LU..O License Period From: k3-ur:i1 To: ~c..2-00 lii Circle One ew Lice se License Transfer Suspension Revocation Cancel (former licensee name) (Give dates) Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division (AGED) 444 Cedar Street, Suite 133, SI. Paul. MN 55101-5133 Telephone 651-201-7507 Fax 651-297-5259 TTY 651-282-6555 License type: (circle all that apply) On Sale Intoxicatin ~da'y Li~ 3.2% On sale 3.2% Off Sale Fee(s): On Sale License fee:$ Sunday License fee: $ 3.2% On Sale fee: $ 3.2% Off Sale fee: $ Licensee Name: VI 'i; DO~ Social Security #~ ~i$.. ';l<14kDC: (corporation, partnership, LLC, or Individual , /II l fI.U~~ lJlt#- Business Trade Name lA1-+rr-€.lL-S Business Address Zip Code >>1(,'J- County 4..1 tIiII cr- Business Phone Home Address 41el ~City MO~'tlll '1 Home Phone Licensee's MN Tax ID # (To Apply ca11651-296-6181) If above named licensee is a co;;ration, partnership, or LLC, complete the following for each partner/officer: ~1I.f. l<'Ii$- ~ ~{l..f e- _.. . ~ fLAr.-(C/ M"J rrso, Pamr/Officer Name (First Middle Last) DGlB Social Security # ~ Address Q' Eo.... . ~ IUH/..E.'I Ilfl-wtl>u.- \.-. . /4'860 f7t.L11~u.. ~ ~ (P~er/Officer Name (First Jiddle Last) ~1f.P.:r ~ IH-Bu-r Partner/Officer Name (-First ~ddle Last) - -~ Home Address /-:L.lc/[ i. ~ ~ Home Address ~ ~ ~i nnR Social Security # DOB Social Security # Intoxicating liquor licensees must attach a certificate of Liquor Liability Insurance to this form. The insurance certificate must contain all of the following: I) Show the exact licensee name (corporation, partnership, LLC, etc) and business address as shown on the license. 2) Cover comPI@license period set by the local city or county licensing authority as shown on the license. Circle One: (Ye No) uring the past year has a summons been issued to the licensee under the Civil Liquor Liability Law? Workers Compensation Insurance is also required by all licensees: Please complete the following: Workers Compensation Insurance Company Name: ~l ( ~~ Policy # ;sttzv1C&-,J. I Certify that this licensees) has been approved in an official meeting by the governing body of the city or county. City Clerk or County Auditor Signature Date (title) On Sale Intoxicating liquor licensees must also purchase a $20 Retailer Buyers Card. To obtain the application for the Buyers Card, please call 651-215-6209, or visit our website at www.dos.state.mn.us. (Form 9011.5/06) ACORD. CERTIFICATE OF LIABILITY INSURANCE ~Tf-1 ""~~~) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATlO ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW PROOUCER stearns Insurance Services 4191 2nd Street South St Cloud HN 56301 Phone:320-253-3525 Fax:320-650-1361 ........, General Caaual Insurance NAIC# 24414 INSURERS AFFORDING COVERAGE West ltiver Restaurants, DBA Chatter. Restauran't: Kv1e KcBride 9:140 state Bwv 25 Monticello HN 55362 Inc. " Bar INSURER A:- INSURER iii: INSURER c: INSURER<> INSURER Ii' COVERAGES THE POlICIES OF ~ lISTED BElOVY HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR TtlE POlICY PERIOD INDCA TED. NOTWITHSTANDING ANY REQI.JIRB.ENT, TERM OR CONJI11ON OF ANY CONTRACT OR ornER I)()Cl)M3IT WITH RESPECT TO WHICH THIS CERTF1CATE MAY BE ISSUED OR MAY PERTMII, THE INSl.JfiW<<:I! AFFORDeD BY THE POlICIES 0ESCRI8ED HEflU:IN IS SUBJECT TO AU THE TERMS, EXClJJSIONS AND CONDf'tlONS OF SUCH POUCIES. AGGRfGATE LMTS SHOWVN MAY HAVE BEEN REDUCED BY PAlO CLAIMS. LTft TYP'!:OP~ POUCYNUMBER ~~ UMITS II ~ IJA8LITY """" OCCURRENCE . 1 , 000 , 000 A ~hCOMNERCIALOENERALUAllIlrTY PENDING 06{01{07 06{30{07 PREMSES ~l . ClAIMSMADE [!]OCCUR MEDEXP(Al\YoneJ*lO'll $5,000 PERSONAL&ArJlIINJURY 51,000,000 G~AGGREGATE 52,000,000 P!lOC<.ClS-CQMP/Of>AGG '2000,000 ~ ~ ~l~.UMtT~PER: IPOlICYl l~ I lLOC ~UA8RJTY ~ Ap.('(.AUTO ALl <>NNED AlIT05 COMBINED SINGLE LIMIT (Eo_ . - ~ SCHEDULED AlITOS _ HIRED AlJTOS _ NON-OWNED AUTOS BCX1l Y INJURY JFeo.......1 . BODIlY JNJUR'f JFeo_ . PR<lPER1Y DAMAGE JFeo_ . =F~ AUTO ONlY - EA NXIDENT S OTHER 'THAN AlITOONlY; EA ACe . AGO . ElCCEllSMIIlAEL LIABLITY :::JOCCLSl c::: ClAIMS MADE """" OCCVRRENCE """""""IE . . . . . =1:::: . WORKERS COMPENSATION AND EMPLOYERS' LWItUTY ~ PROPRIETORJPARTNERIEXECVTIVE OFFICERfMEMBCR EXClUDED? ~~beIow 0","" IlORY UMlTS I IUEI< E-L EACrI ACCIDENT $ E.L DISEASE EA EMPLOYE $ E-L~.~UMIT $ A Liquor Liability PENDING 06{01{07 06{30{07 LIQU LIAS 100,000 300 000 DESCRIPTION Of' OPERATIONS I LOCATIONSI ~ I EIlCLU8IONS ADDeD BY ENDORseMeNT / SPeCIAL. PftOYISIONS aestauran't Ci ty of Monticello 909 Golf Course Road Monticello HN 55632 CANCELLATION CI'rYMON SHOULD ~ OF THE ABOVE DESClUBEO POUCES BE CANCELLED BEFORE Tl-lE EXPIRA DATE THEREOf, THE ISSUING INSlJRIEAWIll ENDEAVOR TO M.AlL 010 DAYSWRfT'TEN NO'T1CE TO THE CERTlFICATE HOLDER NAMED TOTHIi LEFT, BUT PAIl..lJRE TO DO so SHALL rtIPOSE NO OBUOATION OR UABLlTV OF ~y IONO UPON THE INSURER,. rrs AGENTS OR REPRESENTAT1VES. Al.1TliORIZED REPReSENTATIVE Jim W_l CERTIFICATE HOLDER ACORD 25 (2001/08) o ~CORD COR ORATION 1988 51. Consideration of award of bids for Wheel Park equinment. (KB) A. REFERENCE AND BACKGROUND: As per the Council's decision in March, 2007, the Wheel Parks did not open this spring and the equipment was put out for sale by bid. The bid requests were sent to Tier Two parks in the state of Minnesota, thanks to information provided by the League ofMN Cities and True Ride. The sale was also listed on the League of Minnesota Cities web site and on Wisconsin's League of Municipalities web site. There actually was more interest than I had anticipated from Minnesota, but the real serious interest did come from Wisconsin since they do not have the tiering restrictions that Minnesota has. There were four bids received. Two from Wisconsin and two from Minnesota. The high bidder for the Bike Park was from the Village of Marshall in Wisconsin. They bid $17,000 for the equipment. Marshall is a city approximate one hour east of Madison, Wisconsin. They have been notified that they were the highest bidder and were going to be submitted to the Council for final sale approval. Once the sale is authorized by the Council, we'll begin to discuss in earnest the removal of the equipment. As a surprise note, the City of Princeton, Minnesota actually put an offer in for the Skate Park equipment. The Advisory Board had discussed what to do with the equipment. It's not in great shape and it is not able to stand alone. It requires significant modification to use. The Board had decided that if someone was interested in the equipment to let them make an offer. I did provide this information to anyone who expressed an interest and the City of Princeton made an offer of$3,500 for the equipment. B. ALTERNATIVE ACTIONS: I. To approve the bid and approve the sale to the Village of Marshall, Wisconsin for $17,000 for the Bike Park equipment and the offer from the City of Princeton, Minnesota for $3,500 for the Skate Park equipment and proceeding with the removal of the equipment. 2. To not accept the bids or authorize the sale and discuss an alternative action for disposal of the equipment. C. STAFF RECOMMENDATIONS: The City Administrator recommends alternative number one. D. SUPPORTING DATA: Bid summary WHEEL PARK EQUIPMENT BID SUMMARY Village of Marshall, Wisconsin $17,000 City of Sparta, Wisconsin $15,000 City of Princeton, Minnesota $13,000 City of Milaca, Minnesota $10,100 Offer for the Skate Park equipment from City of Princeton, Minnesota $3,500 Council Agenda: 5/14/07 5J. Consideration of a re uest for extension of a Conditional Use Permit for 0 en and Outdoor Sales. Open and Outdoor Storal!:e and Minor Auto Repair. Applicant: Moon Motorsports (AS) A. REFERENCE AND BACKGROUND The Planning Commission reviewed the request for extension to their existing conditional use permit at their May 1", 2007 meeting and recommended approval of the extension for one year. As a supplemental note, Moon Motors submitted an application for amendment to the CUP on May 7'., 2007. As noted in the extension request letter, the amendment is being proposed to allow for site development that better fits the company's financial model. The Planning Commission will be reviewing the amendment on June 5th, 2007. On May 2nd, 2006, the Planning Commission reviewed a conditional use pennit application submitted by Moon Motorsports. The Planning Commission recommended approval of the conditional use permit for Moon Motorsports to allow for open and outdoor storage, outdoor sales and display, and light auto repair, based on a fmding that the proposed uses meet the requirements of the B-4 district. On May gth, 2006, the Monticello City Council approved the same conditional use permit request. Due to non-use, the conditional use pennit is set to expire on May gth, 2007. The Monticello Zoning Ordinance requires that conditional use pennits expire due to non-use after one year. Notification indicating this expiration was provided to applicants, Jeff s Dream, LLC. The notification did include information relating to the ability to seek an extension. By ordinance, a letter requesting extension must be received at least 30 days prior to the expiration of the permit. As such, an extension letter was received on April 9th, 2007. The extension request is attached. A review of the extension petition is required by the Planning Commission, with their recommendation going forward to the City Council. In the request for extension, the applicants have indicated that in addition to their request for extension of the Conditional Use Pennit, they will be seeking to amend their CUP in a future application. The amendment will be requested to alter building size and design to better accommodate their current business model. The extension letter sent by the applicant does not reference a specific timeline for the extension period. Staff would recommend extension of the conditional use pennit for one additional year, to May gth, 200g. B. ALTERNATIVE ACTIONS 1. Motion to approve an extension of the May gth, 2006 Conditional Use pennit for Moon Motorsports to May gth, 200g. 2. Motion to deny an extension of the May gth, 2006 Conditional Use Permit for Moon Motorsports. 3. Motion of other. - C. STAFF RECOMMENDATION Staff recommends approval of the extension for one additional year. D. SUPPORTING DATA Exhibit A: Applicant Extension Request Council Agenda: 5/14/07 Email: sales@moonmotorsales.com moonmotorsports.com P.O. Box 178 . 414 South Highway 25, Monticello, MN 55362 . Phone: 763-295-2920 . Fax: 763-295-5254 9 April 2007 Ms. Angela Schumann, Community Development Coordinator City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Re: Moon Motorsports Applicants: Jeff's Dream, LLC 08-05-019 Subj: Extension of Conditional Use Permit Dear Ms. Schumann: On May sth. 2006, the Monticello City Council approved a conditional use permit for Moon Motors (applicants Jeff's Dream, LLC) for the following: . Open and Outdoor Storage . Open or Outdoor Display . Minor Auto Repair Due to non-use, the Conditional Use Permit is set to expire on May sth, 2007. This letter is sent to request an extension. In addition there have been changes made to the building size and site design to achieve a building that better meets the business model. We are aware that an amendment to CUP Amendment will be required. The CUP Amendment application will trail the CUP Extension. We look forward to working with the City of Monticello to keep the approval process moving forward. Please feel free to contact me with any questions or concerns. RECEIVED APR - 9 2007 Sincerely, ~. / (,.." /1 / / "- evc 'Z h- c: _ 0'i-k4.-L.-/ ~I Erickson Owner - Moon Motorsports \9 HONDA YAMAHA' POLRRIS' Council Agenda: 5/14/07 5K. Consideration of approval of contribution for Groveland Park Tree Plantilll!:. (R W) A. REFERENCE AND BACKGROUND: The City has received a donation in the amount of$3,000 from Monticello Lions Club for the tree planting project at Groveland Park. As required by state statute, if the City accepts the donation of funds, the City Council needs to adopt a resolution specifying the amount of the donation and its use. B. ALTERNATIVE ACTIONS: 1. Approve the contribution and authorize use of funds as specified by the donor. 2. Do not approve the contribution and return the funds to the donor. C. STAFF RECOMMENDATION: It is the recommendation of the City Administrator and the Finance Department to adopt the resolution accepting the contribution. D. SUPPORTING DATA: Resolution City of Monticello RESOLUTION NO. 2007-36 RESOLUTION APPROVING CONTRIBUTIONS WHEREAS, the City of Monticello is generally authorized to accept contributions of real and personal property pursuant to Minnesota Statutes Sections 465.03 and 465.04 for the benefit of its citizens and is specifically authorized to maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor. Said gifts may be limited under provisions ofMN Statutes Section 471.895. WHEREAS, the following persons and or entities have offered to contribute contributions or gifts to the City as listed: DONOR/ENTITY Monticello Lions Club DESCRIPTION Cash contribution VALUE $3,000.00 WHEREAS, all said contributions are intended to aid the City in establishing facilities, operations or programs within the city's jurisdiction either alone or in cooperation with others, as allowed by law; and WHEREAS, the City Council hereby finds that it is appropriate to accept the contributions offered. NOW THEREFORE BE IT RESOLVED by the City Council of Monticello as follows: 1. 2. The contributions described above are hereby accepted by the City of Monticello. The contributions described above will be used as designated by the donor. This may entail reimbursing or allocating the money to another entity that will utilize the funds for the following stated purpose: DONOR/ENTITY RECIPIENT PURPOSE Tree Planting at Groveland Park Monticello Lions Club Parks Department Adopted by the City Council of Monticello this 14th day of May, 2007. Clint Herbst, Mayor ATTEST: Jeff O'Neill, City Administrator Council Agenda: 5/14/07 5L. Consideration of approvinl!: carnival permit for Minnesota Mal!:ic. (JO) A. REFERENCE AND BACKGROUND: The City has received a request from Minnesota Magic Midway to conduct a carnival on property across from Wal-Mart over the Memorial Day weekend (May 24-28). The City's ordinance regulating carnivals/traveling shows requires that the applicant submit a completed application form, a certificate of insurance and a surety bond in the amount of $5,000 as well as pay a license fee of $1 OO/the first day and $50/day for each day thereafter. The Council must also approve the application. Mr. Reinke has questioned the provision requiring a surety bond and indicated that he had talked to the Mayor questioning this provision. If the Council determines that there is no need for the surety bond requirement, the ordinance should be amended to delete that provision. If the Council feels the surety bond requirement should remain, Mr. Reinke was asking if the City would accept a check in lieu of the bond. The check would be refunded after the event, assuming everything was in order. B. ALTERNATIVE ACTIONS: I. The Council could approve the permit application contingent upon submittal of the certificate of insurance and surety bond in the amount of $5,000 and payment of the license fee. 2. The Council could approve the permit application contingent upon submittal of the certificate of insurance and check in the amount of$5,000 and payment of the license fee. 3. The Council could approve the permit application contingent upon submittal of the certificate of insurance and payment of the license fee and waive the bond requirement of the ordinance with the direction that staff prepares an ordinance amendment deleting the surety bond provision from the current ordinance. 4. The Council deny the approval of the carnival permit. C. STAFF RECOMMENDATION: It has been several years since the City has approved a permit for a carnival/traveling show. In the past the applicants have complied with all of the provisions ofthe ordinance including the surety bond. However, if the Council feels the requirement of a surety bond is no longer needed, they should direct staff to amend the ordinance to either delete that provision in its entirety or, if the Council desires, reduce the amount of the surety bond. If the Council determines to keep the surety bond provision in the ordinance, they may wish to add language that would allow alternatives to a surety bond such as a check or other acceptable form of security. While City staff has not had any major issues with the provisions of the ordinance and would be acceptable to the Council approving Alternative #1 or #2, if the Council feels the surety bond provision is unnecessary and should be changed, then Alternative #3 should be approved. Council Agenda: 5/14/07 D. SUPPORTING DATA: Application Ordinance Applicant Name: ;; '!.s/{t f I( ~e- t o:J /<.. E:.- Address: 11516 0 -:j~,..5l>eh ,.d "/ Phone: 763 -7:5"3- Y6 71 !ftf..9()f{/?- <<l;-J ~3o-:3 CITY OF MONTICELLO TRAVELING SHOW APPLICATION Fee: $100 - 1st day, $ 50 - thereafter Business Name:/YJ IV. IY1 6--. '/' ,:c... Address: p. c). B 6 lC. A uN'<: 0- . 1"iIt0 M,'J..e9o... J Phone: 763- ~.5,.3 ~i6 7"1 =t~'9 ~S~o--3 Name of Organization Sponsoring Amusement Cifany): Location Where Show will be Held: Ac."'o~,s I'",,,,..-n L.JQI vY1Q....+ DateCs) of Carnival or Show: /V) CY /J J L( - J.. 7/, 200"1 Name of Insurance Company (proof of insurance shall be provided with application): Minimum requirements are: $100,000 - injury, liability $300,000 - each occurrence $ 50,000 - property damage SURETY BOND REQ1JlREMENTS: A surety bond in the amount of $5,000 shall accompany application to ensure that all federal, state, and local regulations are adhered to. ~ 81( ! I~g~ Applicant Signat e ****************************************************************************** (For City Use Only) Receipt # Approved Denied City Signature TllAVELlNG.API': 3121196 SECTION: 3-9-1: 3-9-2: 3-9-3: 3-9-4: 3-9-5: 3-9-6: 3-9-7: 3-9-8: 3-9-9: 3-9-10: 3-9-1: . 3-9-2: 3-9-3: 3-9-4: 3-9-5: 3-9-6: CHAPTER 9 TRAVELING SHOWS Purpose Definitions License Required License Application License Fees Provisions of License Surety Bond Insurance Approval of License Revocation PURPOSE: To control and regulate traveling shows. DEFINITIONS: Unless otherwise stated, whenever used in this chapter, the following words shall have the meaning given them in this section. CARNIVAL: A traveling enterprise offering amusement. CIRCUS: An arena often covered by a tent and used for variety shows, usually including tests of physical skill and daring, wild animal acts, and performances by jugglers, clowns, etc. MENAGERIE: Display of animals for exhibition. LICENSE REQUIRED: No individual or firm shall operate a carnival, circus, or menagerie in the city of Monticello without having first obtained a license as provided by this chapter. LICENSE APPLICATION: Every person or firm desiring license shall fill out a form as prescribed by the City Clerk and receive approval for such application by the City Council. Such an application shall be made at least ten (10) days in advance of the City Council meeting at which it is to be considered. LICENSE FEES: Fee for a license shall be a fee schedule adopted by the City Council. The fee payment shall accompany application. This license fee may be waived or modified for non-profit organizations by the City Council. (#107, 11/23/81) PROVISIONS OF LICENSE: License shall be as provided in the license application unless modified y the City Council and shall not be for a period longer than seven (7) days. MONTICELLO CITY ORDINANCE TITLE IIl/Chpt 9/Page 1 3-9-7: SURETY BOND: A surety bond in the amount of Five Thousand Dollars ($5,000) shall be provided to the City of Monticello to insure that all applicable federal, state, and city regulations are adhered to, including provisions of this chapter. This bond shall accompany the application. 3-9-8: INSURANCE: Proof of insurance shall be provided with the application and shall include protection at least in the following amounts. 1. For amounts including death therefrom sustained by anyone person - $100,000. 2. For injuries including death therefrom sustained by two or more persons resulting from one occurrence - $300,000. 3. For property damage - $50,000. 3-9-9: APPROVAL OF LlCENSE: City Council shall review application and consider approval based on the following factors. (A) Adherence to ordinance provisions in this section. (B) Previous violations of City of Monticello ordinances, other cities' ordinances, state and federal regulations. (C) Location and capability oflocation to handle anticipated traffic, etc. (D) Noise levels and proximity to residences, nursing homes, hospitals. (E) Other extenuating circumstances that may endanger the health, safety, and general welfare of the City of Monticello and its citizens. 3-9-10: REVOCATION: City Council may revoke the license at any time for violations of this ordinance or becoming aware of misrepresentation of facts in the application. MONTICELLO CITY ORDINANCE TITLE IlI/Chpt 9/Page 2 Council Agenda - 05/14/2007 7. Consideration of Selectinl! Firm to Complete the Public Works Needs and New Facilitv Study. (J.S.) A. REFERENCE AND BACKGROUND: Prior to this meeting you will have interviewed 3 firms considered for the Public Works Needs and New Facility Study. The first was Bonestroo from St. Paul, MN then came JEA Architects out of Eden Prairie, MN and the last was Kodet Architectural from Minneapolis, MN. A rating sheet as been developed for your use in the interview process, using this form you can rate the individual firms on their proposals as well as their presentations. Use of the rating form should speed up the amount of time it would take for the Council to reach its decision as to which firm to choose. Along with the individual rating sheets, we have included another copy ofthe original request for proposals for you to refer to during the interview process as well as the selection process. B. ALTERNATIVE ACTIONS: 1. The first alternative would be to choose the firm of Bonestroo Rosene Anderlik of St. Paul, MN to complete the study at a cost of$21,000. 2. The second alternative would be to choose JEA Architects of Eden Prairie, MN to complete the study at a cost of $22,750. 3. The third alternative would be to choose the firm of Kodet Architectural of Minneapolis, MN to complete the study at a cost of $20,200. C. STAFF RECOMMENDATION: City staff consisting of the City Administrator, Chief Financial Officer, City Engineer and the Public Works Director withhold their recommendation pending the conclusion of the interview process. If so desired, the Council can poll each one of the staff mernbers individually for their recommendations during the selection process at the regular Council meeting. D. SUPPORTING DATA: Copy of request for proposals, copies of the three proposals are not enclosed as they were previously delivered under separate cover, copy of the proposal tabulation and copy of the individual rating sheets used during the interview and selection processes. Council Agenda - 05/14/2007 8. Consideration of replacement of 1994 Ford pickup for the Park Superintendent. (J.S.) A. REFERENCE AND BACKGROUND: The 1994 Ford F-150 4x4 pickup had been used in the Street Department by the Street Superintendent for most of its life with the City of Monticello. It later served as a backup vehicle for summer use and lastly it was used by the Park Superintendent. The vehicle currently has 116,000 miles on it. The vehicle has reached its useful life as a primary service vehicle and needs some mechanical repairs and has some serious rust problems. The shop mechanic and Park Superintendent went through the vehicle and concluded that the rear shackles are completely rusted out, the air pump is in need of replacement, the water pump is in need of replacement and the body and frame are beginning to rust. Recently the fuel tank rusted out and began leaking. In preparation for the replacement of this vehicle we placed an amount of $20,000 in the 2007 Budget. Seth Nelson, the Park Superintendent, obtained a price from Elk River Ford for a 2007 Ford Y, ton 4x4 pickup as Elk River Ford has the state bid. The price for the new 2007 Y, ton pickup equipped similarly to the 1994 Ford from Elk River Ford on the state bid including tax, license and all fees is $18,150.81. As is customary, Seth also went to Monticello Ford Commercial Sales and asked them for a price on the same vehicle and their price with all taxes, fees and license is $18,298.53 which is only $147.72 above the state bid. This is only 8/10 of 1 % over the state bid. In order to determine a value of the 1994 Ford pickup Seth took it to Monticello Ford and asked them for a trade-in value and Monticello Ford gave us a trade-in value of $1,300. Since sales tax is not paid in on trade-in value, the actual value of trading in the 1994 Ford to Monticello Ford is $1,384.50, which brings the purchase price with trade, sales tax, license and all fees to $16,914.03. B. ALTERNATIVE ACTIONS: 1. The first alternative is to purchase the 2007 Ford pickup from Monticello Ford Commercial Sales and trade in the 1994 Ford pickup for a trade difference including all sales tax, fees, transfers and license in the amount of$16,9l4.03. 2. The second alternative would be to look at purchasing the new pickup from Elk River Ford. Assuming a similar trade in value, the purchase price would be $147.72 less than alternative #1. 3. The third alternative would be not to purchase a new pickup but to make all of the necessary repairs to the 1994 Ford pickup and keep using it. C. STAFF RECOMMENDATION: It is the recommendation of the City Administrator, Public Works Director, Park Superintendent and the City's mechanic that the City trade off the 1994 Ford pickup and obtain a new pickup as outlined in alternative #1 or #2. Since we are dealing with such a small amount, less than 8/10 of 1% to purchase locally, as Public Works Director I would recommend that you choose alternative #1 and purchase the pickup locally from Monticello Ford. Council Meeting - 05/14/2007 D. SUPPORTING DATA: Copy of proposal from Elk River Ford; Copy of proposal from Monticello Ford Commercial Sales; Copy of trade-in value of the 1994 Ford from Monticello Ford Commercial Sales; Copy of pictures of the 1994 Ford. ~.. •a~ n . 2B CONTRACT # 436604 Customer Name:. „LK ~ R ~, ~_ urns Quv~- oa~e SEr~~~ ~ sy~ 6 a Year Make. Model En ine Transmission 2007 ~ Ford ~ F-150 4X4 J 4.6 L V-8 AUTOMATIC Whe Base Cab to Axle Color Tires 145"~~~ v P235-75R'-17 ALL. TERRAIN TREAD 2007 FORD F-150 4X4 REGt1LAR CAB PICKUP WITH 8 FO~?T BOX Ff 4 S ecial Bid Price: $16,772.50 Included U ___ tions k. 40/20!40 VINYL BENCH SEAT S ~ q .LIMITED SLIP DIFFERENTIAL X 6,950 GVWR 5 Ski ENGINE BLOCK HEATER CRUISE CONTROL / 2, TRAILER TOW PACKAGE ~! AIR CONDITIONING v' AM/FM STEREO WITH CLOCK SKID PLATES -a/ DAYTIME RUNNING LIGHTS XL TRIM t/ Availa ble Q tions at Net BLACK TUBULAR RUNNIG BOARDS $240.00 REAR WINDOW DEFROSTER $120.00 SLIDING REAR WINDOW NIA WITH REAR DEFROST $180.00 POWER EQUIPMENT GROUP ~POwER ~ocKS. WINDOWS. MIRRORS RND KEYLESS ENTRY} $636.00 AM/FM STEREO WITH CD $232.00 35 GALLON FUEL TANK $76.00 CLOTH 40-20-40 FRONT SEAT NO CHARGE Retail Price: ~D f ,$"~ Less Fleet Discount: Net Price: i,~ ERF FLEET DEPARTMENT ~~~ i,~45 '~ti r~Nr ai ~r vr. i iN rvivrrucz~w wrirenauea; for rvxr ivuoe N. i GNrp~'0 VEHICLE ORDER COVFIRMAT10~7 04/30/07 15;OP:33 __~ ~-- ,__ Dealer : F58 6A 3 2007 F'-150 Page: T oL 2 Order No: 1258 Priority: F1 Ord FIN: QC450 Order Typo: 5B Price Lcvel: 755 }rd PEP. 502A Cult/Flt Name: NOI~ITTCELLO PO Number: RETAIL, RE'A'P IT F24 F150 4X1 5S R/C` $?.3420 6950~F GVWR 145" ;nTHF.EL]3ASE J4B #2 ORDER GG FOR~;ST GR:EN CC 1S3 ~~2"-` LIC~:NSF, BKT NC C (:LC}TH 40120/44 18E gi•K TU$LR BDS 300 E FLINT 52N SpEEt7 CONTROL 2~5 502A PREF EOUIP PKG 535 TRAILEF TOW PKG 353 . XL SE:ZT.I:5 5'i 2 AIR CONT)I TI ON g JQ . CA~~PET DEi,£TL .MAN B%K MIRIiS TOTAL ~ASL•' AND OPTIONS 26415 .AM/FM STEREO 'T'OTAL 26415 64C .17" GREY STEEL. *TI3IS IS NOT AN INVOICJ* 99W 4.6L EFI 'V$ ENG kTOTAL PRICE E}CC~UDES COn~'IP PR ~4Q ELEC 4-SPB AUTO NC T7B -P735 3Sw A-T '~ MORE ORDER IN~~O NExT PAGE XFI9 3.55 LTL~ SLIP 300 F8=hext ~`1=Help F2tReturn to Order F3/F12=Veh Ox'd Mend F9-Sttbmi;; FS=Add to Library 1~'~View ~'rai3ers 5006 -MARE DATA IS AVAILABI~. QC093541 ~,~~e ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~~- T~a c . ~' ~} ' ~ .~a ?.~ ~ ~ ~~ ~` ~~ I ~- ~~,~, ~ ~ mo nµ au yr vi.i iN i~iaiumiu w~i«i~wucM Ja rvxr iwa~ ~.~ t~•I~Or~530 VFHICL~; ORDER CONI'TRM7ITIODJ G~l3~l/07 :,5:08; 4$ -_> -• ~ Dealer; F~8'a43 200 F~-15d Paige: 2 of ?_ Order No: 1258 Prioxity: Fl Ord FIN: OC450 Order Type: 5B YriCG .Gece1: 755 Ord PL•:P: SO?_11 Cusr_/Flt Name: MOhT'1'IC:'7,L0 PO Number; RETAIL RET7IZL 794 PRICE CONCESSN REM74RX5 'TRAILER ~ 4 DA.X RZTIJ '~, i GHTS ~] 5 SP DLR z1CCT ADJ SP kZT ACCT CR 5 U. S . CaAL G7s5 84A NET INV FLT OPT NC DEST AND DE.GZV 92S TOTAL DASF, ANll OPTIO'_VS ?_6915 TOT?1. 2 0 415 ''"THIS TS i~T01' .r,N Il`JVOICF.~' * T01'.AL ?RICE FXCLiSDFS COMP PR F1=Help F2=Return to Order .E4=Submit F5=-Add co Library 5099 -PRESS F4 TQ SUBM~'T F7-Prcv F3lF12='Jeh Ox'd Menu F9=view Trailers QC093541 t+nay uy w ~tU:~a rvtormcetto +Lomrneraa~ mat .r G~` ~ ~~ ~° a ro:~tnr3nttt p.~ TOM KLOCK CO. (~52) 4~2.OD[i6 Stock Color. atolnr~ Owner G~ ~~j~~ oA~~ Year Odvmeior ~ OOvor t"axe --~~,~c-~/ 1-O -_~~ a 2 t3oor D ~ Door Exp. Date _ Ni ~'~TL~'I~'-I-I /I ~'Gt~(~r I~1L I~lo 8 9 9 90 9u 9 5 9 O 01 1 5 r ~a 0. 6 V w ~ O 2 P 5 x N T U ( ~) 2 5 Y 3 ~ ~ dX2 r 4 4 6 Enair>c 8 ~~ V10 it ' ANUFM Stereo Moon ' LOwger NNCP Ca SI o W1T dpe Aool Int. Mt. Manual Lcatt-cr CI t Tran, ^ ^ Bed o t?ually liner ~ ~--~ t? P, tacar TN C s Quads Seat Wlndovr:, fi Locks HoaUAb vsge Tit1a? ^Yos No Maintenance PeAorme t5K - 30 a - 60K-90K Nono Previous Body Damage? UYes K o Body and Palrt _........_.........__....``_.~ .................... S Nai! damage? 4 lYes o 3 ,_. ............. Glass, Windshield Ins.? ©Yes ....................... ^ Ha..... Front End Struts - 8 It .Jartts -Yip Aads , , Gpholstery..._.._ .......................................... ................~..„. S Tiros 2 4 (c'ucte one)...... ._._.......___...... $ fVotcs• „c;n~' C tC ~"~ ~ .`. cz, as c CO ..~ ..r ..~ cV O ,~ .-r ~. a U L ,C b1 Cr ..r Sr a a~ a~ y L r~"a w.r 4~ Qr .~ O .~ ~+ "L~ it O W d' Council Agenda: 5/14/07 9. Consider Approvine: the Plans and Specifications and Authorize the Advertisement for Bids for the Reconstruction of Chelsea Road CSAH 18 to West of Fallon Avenue Ci of Monticello Proiect No. 2006-31C} (WSB) A. REFERENCE AND BACKGROUND: Proiect Description: The proposed project includes the reconstruction of Chelsea Road from CSAH 18 to west of Fallon A venue and realigning the Chelsea Road/Fallon Avenue intersection. A feasibility report addressing the improvements was accepted at the January 22, 2007 City Council meeting and a Public Hearing was held on February 12, 2007. The proposed infrastructure improvements will include reconstructing approximately 4,200 feet of Chelsea Road from where it was improved with the interchange project, approximately 800 feet west ofCSAH 18, to approximately 800 feet west of Fallon Avenue with curb and gutter and storm sewer. Fallon Avenue is proposed to be realigned and reconstructed to an urban section approximately 450 feet to the south from the intersection with Chelsea Road. Chelsea Road is proposed to be constructed with two through lanes and a center left turn lane, 44 feet wide within the existing right-of-way/easement. Storm sewer would extend within Chelsea Road to the pond at the City's reservoir site west of Fallon Avenue. Storm sewer stubs will be provided to accommodate drainage from adjacent properties as development occurs. Plastic storm sewer pipe will be bid as an alternate to concrete storm sewer so the City can choose the material that offers the lowest construction cost. Minor adjustments to the existing watermain and sanitary sewer systems are necessary to be made with the storm sewer construction. The 36-inch trunk sanitary sewer will be extended south along Fallon Avenue just past the construction limits and stubbed out for future extension. Landscaping improvements are not included with the project costs. The following are issues that require more specific attention: . Fallon Avenue/Chelsea Road Intersection The project includes reconstructing and realigning the Chelsea RoadlFallon Avenue intersection. Realigning the intersection will improve the intersection geometries by creating 90 degree angles at the street approaches to reduce the curves entering the intersection and improve visibility and turning movements. This realignment will also line up with the future Fallon Avenue overpass. Completing the intersection will allow Fallon Avenue and the overpass to be constructed without impacting Chelsea Road. . Turn Lanes Right turn lanes to future developed parcels maybe added to this project during the construction phase if approved based on the requirements of proposed developments F:\da......giwonJproc',2007 COWICiI Agendas\5-14"()7 cc agendaI9Ckelse<lRriReconApprovePIrl1l$SpeCsAFB-051407 (l).doc I There have been some recent discussions regarding utilizing a concrete, landscaped median along the length of Chelsea Road. It was thought that in the event the area transitions to a mixed use area (Commercial/IlAlOffice) it might make sense to create a more inviting avenue. While this is certainly a possibility, we would like to address a few of the issues related to that option: Council Agenda: 5/14/07 currently in the planning phase. The right turn lanes will be funded 100% by the developing properties. . Landscaped Median/protected turn lanes 1. Right-of-Way: A landscaped median would require an additional 12-16 feet of street width, which would likely require some additional right-of-way. 2. Left Turn Lanes: Currently, there are several driveway entrances on the south side, with a significant area still undeveloped. Because of the number of driveways, we believe a continuous left turn lane would be needed on the north side of the median. This median would have numerous cuts to accommodate all of the existing and proposed driveways. The left turn lanes for future development north of Chelsea Road would need to use similar median openmgs. 3. Cost: This change would add a significant cost to the project and would reduce the available developable property. 4. Landscaping: This area could have a significant landscape plan developed in the boulevard that would provide a similar appearance. Weare happy to explore this option in more detail if the Council is interested. . Right-of-Wav Impacts In an effort to realign the horizontal curve through the Fallon Avenue intersection, we needed to shift the alignment to the south. Further, a right turn lane is necessary to Fallon Avenue. These two changes extend our right-of-way needs outside of the current right-of-way by approximately 2,800 SF. The realignment of Fallon Avenue will create excess right-of-way west of the new street of approximately 10,000 SF. We have spoken with the owners ofWCG (former Clow site) about trading some property as well as selling the renmant right-of-way along Fallon Avenue. They are willing to work with the City, but would like to do an even trade. It should be noted that they have agreed to allow the City to move their existing accesses away from the intersection. 1 told them that the Council would need to make the decision on this issue since previously, excess right-of-way has been sold. They also noted that they will be dressing up the front of the building and fixing the parking lot and are considering doubling the building size. . Pathway While we know that the City chose to remove the pathway from the project, we know that there was talk of the City installing it in the future. Considering the competitive F:ldtl""l"""rdprocllOOJ COWICiI Agendas'5-U-OJ cc agenda',9ClrelsfaRdl/econApprovePlansSp<<>AFB-05U07 (2).doc . Council Agenda: 5/14/07 bid prices this year, we are wondering if the Council would like to bid an 8-foot bituminous pathway extending along the north side of Chelsea Road as an alternate bid. By including the pathway as an alternate in the bidding documents, the City can choose to include or omit the path depending on the actual bid prices In addition, representatives from the Monticello School District noted the benefit of having the Chelsea Road pathway in place for the purpose of providing safe pedestrian and bike access to and from the School District property. The estimated construction cost is $2,001,200. The estimated cost does not include the cost to construct the pathway along the north side of Chelsea Road as it will be bid as an alternate item and will only be constructed if the construction prices are low and approved for construction by the City Council after the bids are received. The project is proposed to be funded through special assessments to the adjacent benefiting properties, City funds, trunk funds, and assessment agreements with the developers of the Monticello Industrial Park. City funding would consist of the street reconstruction costs above the standard non-residential street reconstruction rate, general utility adjustments including extension of the trunk sanitary sewer along Fallon Avenue, and storm sewer upsizing costs. The bid opening date will be set for Wednesday, June 13,2007. The bid will be presented at the June 25, 2007 Council meeting for consideration of awarding the project to the winning bidder. We will present the bid results prior to the City council meeting. We would appreciate your comments on the following items: I. Should we bid the pathway as an alternate? 2. Do you want to consider a landscaped median? 3. Row would you like to address the excess right-of-way along Fallon Avenue? B. ALTERNATIVE ACTIONS: I. Approve the plans and specifications and authorize the advertisement of bids for the reconstruction of Chelsea Road (CSAR 18 to west of Fallon Avenue) (City of Monticello Project No. 2006-31 C). 2. Do not approve the plans and specifications at this time. C. STAFF RECOMMENDATION: The City Administrator, Public Works Director, and City Engineer recommend that the Council authorize Alternative No.1. D. SUPPORTING DATA: None F:',Jalmg',lWI'<iproc',ZOO7 council Agendasl5-U..(J7 cc Ggelldal9CllelseaRdReconApprovePlansSpecsAFB-05U07 a).thx Council Agenda: 5/14/07 10. Authorize the Distribution of an Environmental Assessment Worksheet Mills Fleet Farm (City of Monticello) (WSB) for A. REFERENCE AND BACKGROUND: The Mills Fleet Farm site is proposed on two sites located in central Monticello consisting of approximately 34 acres south of Chelsea Road and east of Fallon Avenue and 2 acres just north of the larger site for a total of 36 acres. The project would include a 282,659 SF retail development. This amount includes the 273,201 SF retail center with automotive and seasonal areas, a 4,378 SF convenience store with gas pumps, and a 5,080 SF car wash. The convenience store and car wash are proposed on the north parcel with the rest of the development on the south parcel. The site is within the existing industrial park and the project would require a Comprehensive Plan amendment and rezoning for the commercial use. This development required an EA W pursuant to Minnesota Rules 4410.4300 subpart 14.8 pertaining to the construction of over 200,000 SF of commercial development. The EA W process includes distribution with public notice for a 30 calendar day review. Authorizing the EA W does not constitute approval of the project, but rather that the EA W is complete and can be submitted for agency review. The City of Monticello is the Responsible Govemment Unit (RGU) for the preparation of this EA W. The Mills Fleet Farm EA W is attached. Upon receipt of all public comment, this item will be brought back to the City Council for a final decision regarding the need for an Environmental Impact Statement (EIS). Mills has paid for the cost to complete the EA W process. However there has been some added cost relating to the change in the plan, therefore staff will be requiring that Mills supplement the deposit accordingly. B. ALTERNATIVE ACTIONS: 1. Authorize distribution of the EAW for the Mills Fleet Farm development to the required agencies. 2. Do not authorize distribution of the Mills Fleet Farm EA W at this time. C. STAFF RECOMMENDATION: The City Administrator and City Engineer recommend selecting Alternative No.1. D. SUPPORTING DATA: Mills Fleet Farm EA W C:1Documents and Settings',dawn.grossirlger'.!.ocal SettingslTemporary [niernet Files\OLKBJ\AGN ITM_FleelFarmEAW_05! 407 (Z),doc Council Agenda: 5/14/07 11. Consideration of Proiect Award for the Gradinl!: and Drainal!:e Imurovements at the Monticello Middle School and A Glorious Church (WSB) A. REFERENCE AND BACKGROUND: At the April 9, 2007, City Council meeting, the City Council approved the plans and specifications and authorized the advertisement for bids for the Pond Improvement Projects for the Monticello Middle School and A Glorious Church. The proposed project consists of expanding existing City storm water ponds for storm water management. The bids for this project were opened on Monday, May 7, 2007, at Monticello City Hall and of the nine contractors bidding on the project, the low bid of$ 93,095.45 (construction costs) was submitted by Motzko Companies LLC. The Engineer's Estimate was $ 158,071 (construction costs). It is important to note that this project was bid with the thought that some excess material could be hauled to other locations. Because we were unsure as to the amount of fill to be moved, a small quantity of hauling was bid. Consequently, the actual construction cost of this project may increase as the City considers the import of organic and fill materials to other locations in the City. This project involves excavating material to increase the size of two storm water ponds and placing the material on adjacent properties for future parking lot construction. The soils report prepared for this project has identified an excess of organic material at the church site, which may not be suitable for a parking lot base, but would be beneficial to establish vegetation on City projects and parks. The bid was written so that the City would have a unit price for keeping materials on site and trucking them to another location in the City. Once the topsoil is stripped, the Engineer can determine how much material is available for other locations. The City may also decide to truck fill material to the unfinished park in the northeast comer of the Sunset Ponds development to establish final grade in this park area. The park in this development has been unfinished for over two years and the City is retaining $115,000 from the developer's letter of credit to cover the cost of completing the park. The City has given the owner until August I, 2007, to complete this work. It is recommended that the City give the owner the opportunity to purchase the fill material at the unit cost or haul the material to this location after the August I deadline and use money from the letter of credit to pay for the work. It is anticipated that a maximum of 10,000 CY would be moved from these sites at a unit price of$6.25, increasing the construction cost ofthis project to $155,595.45. Therefore, we want the Council to be aware that the construct could increase to that amount if the maximum amount of hauling is utilized. These pond improvements have been previously identified by the City's Surface Water Management Plan and with the improvements upstream, the projects take on greater importance in the City's overall surface water management. K;'d621-JOlAdmin\DocslAgenda ItermlAGN ITM_IlfiddleSchoolPQnd-050907.doc Council Agenda: 5/14/07 B. ALTERNATIVE ACTIONS: 1. Award the bid to the Motzko Companies LLC, the low bidding contractor for the grading, site work and drainage improvements at the Monticello Middle School and A Glorious Church sites. 2. Reject all bids and do not authorize the construction project at this time. C. STAFF RECOMMENDATION: It is the recommendation ofthe City Engineer and Public Works Director to select Alternative No.1 due to the very competitive bids received. D. SUPPORTING DATA: Letter of Recommendation Bid Tabulation K:I,1627_50IAdmin''oDocs\Agenda Itel1lJlAGN ITM_MiddleSclwofPrmd-050907,doc . WSB & Associates, Inc. Infrastructure I Engineering I Planning I Construction 101 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 163-541-4800 Fax: 163-541-1100 May 8, 2007 Honorable Mayor and City Council City of Monticello 505 Walnut Street Suite 1 Monticello, MN 55362 Re: Pond Improvement Projects, Monticello Middle School and A Glorious Church City of Monticello Project No. 2006-09C WSB Project No. 1627-50 Dear Mayor and City Council Members: Bids were received for the above-referenced project on Monday, May 7, 2007, and were opened and read aloud. A total of nine bids were received. The bids were checked for mathematical accuracy and tabulated. The Engineer's Estimate was $158,071.00. Please [md enclosed the bid tabulation indicating the low bidder as Motzko Companies LLC, Delano, Minnesota, in the amount of $93,095.45. We recommend that the City Council consider these bids and award a contract to Motzko Companies LLC based on the results of the bids received. Sincerely, 7iJ sociates, Inc. Phillip Elkin, PE Project Manager Enclosures cc: Motzko Companies, LLC lh Minneapolis. SI. Cloud Equal Opportunity Employer K:\OJ627.50Wmin\COll$lruclion AJmin\Recmnd Ltr~ 05lJ807.doc PROJECT: Pond Improvement Projects for Monticello Middle School & A Glorious Church LOCATION: Monticello, MN WSB PROJECT NO.: 1627-50 Bids Opened: Monday, May 7, 2007, at 10:00 a.m. Contractor Bid Security (5%) Grand Total Bid 1 Motzko Companies LLC 2 Matt Bullock Contracting 3 Rachel Contracting 4 Mathiowetz Construction Company 5 Dennis Fehn Gravel & Excavating, Inc. 6 Rud Excavating, Inc. 7 Veit & Company, Inc. 8 R.L. Larson Excavating, Inc. 9 Sunram Construction x X X X X X X X X ~~ {~fJf~_~ $104,867.00 $107,072.00 $110,578.06 $116,031.44 $116.901.00 $127,621.10 $152,440.01 $244,451.41 Engineer's Opinion of Cost $158,071.00 I "_by ,,,'" .,,". t, , t~ ~b"'''," of '" bid, ~ ,","t"" '" ." 7. 2007 Phillip E:1kin, PE _11 Denotes corrected figure K:\01627-5alAdmln\CONtruc'lon Admln11627-60 Bid Tab Summary t- o o '" ,.: o ~ ~ .", '" o :E r-- o o N - r-- - It) '" o .~ "3 ~ f-< .", i:'ii o V) , r- '" \0 - o c o :;:: III 00- lJ)::::I 3:~ I- "0 in d zo ....z <.> III .... .. b~Cl) c._c 02:il: 00..0 "0 C o a.. '0 o 0 .c- U(I) lJ)U (1)+1 _c "00 :s!5 5- o ... o ~O Gi .... c, E g,!: 11I:= C ZO(l) .... Co U 0 ~ "0 o .- 0: 00 ~ '0 .. f~ el:: 'E ~1! ~ ~ .!i '" ~ E ~ C Jll 8~ ~ . '5 .g '" .. ~ 'E ~~ g ~ - 'C .r" .!!!' 1i C "0 ~I.':. 8 ~ 3l &: :! ~ o c :!::> ,~ .m ~ ~ Jl ~~ ~ ~ ~ 5: .~ '2 ~.2. ~ C ~ , ~~ .. '2 >-~ '0 5 .. 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CI Gl ll:: UI 't:l :c - o c o ::: CJ ::I 't:l e a. Gl .. ... CJ ~ Q) c ~ ~~ :; ~ :e Q) CJ >- .c Q) .. Q) .c a1~ 't:l Gl ;;:: :e.l!l GlCU 00 ... ..... o ... v- ... Council Agenda - 5/14/07 12. Approval for formation of a City Fiber Optics Committee. (JO) A. REFERENCE AND BACKGROUND: Since its inception in 2005, the Monticello Fiber Optics Task Force has offered strategic advice and recommendations to the City Council in regard to the Monticello Fiber Optics project. It has gathered and analyzed essential information, heard from the public and communicated with the public about the goals of the project and provided recommendations for action to the City Council. Upon recommendation of the Task Force, the City Council adopted the goal of building a city wide fiber optics network that would offer telephone, cable TV and internet service to the residents in Monticello. It will be capable of offering many other services as well in areas of security, public safety, education, health care and community information. It is expected to support long term goals of economic development. The Fiber Optics Project has now completed the planning stage. At the Council meeting on March 26t\ the Council approved critical forward funding for the next stage of work. The next stage involves engineering and deployment of a FTTH network, securing the financial health of the network and business formation activities essential for creation of a successful City enterprise. Many of the actions now required and many of the decisions now to be made should be clearly seen to fall under City authority. Therefore, it is recommended that the Council establish a City Fiber Optics Committee with general oversight responsibility for activities related to the fiber optics proj ect in Monticello during the interim phase prior to the engagement of the enterprise management. It is recommended that membership on that Committee include membership drawn from the City Council, City Staff and the current Task Force in order to insure continuity of management of the fiber optics project. To that end it is recommended that the City Fiber Optics Committee membership include the following: (1) Mayor Clint Herbst; (2) Councilman Wayne Mayer; (3) City Administrator Jeff O'Neill; (4) Cathy Shuman, Senior Finance Officer; (5) Ollie Koropchak, Economic Development Director; (6) John Simola, Director of Public Works and/or Bruce Westby, City Engineer; (7) Lynne Dahl Fleming, Business Owner. It is recommended that City Administrator Jeff O'Neill shall convene the City Fiber Optics Committee and organize its activities. Other City Staff may be called upon to provide support services to the City Fiber Optics Committee for specific purposes. Among the key responsibilities of the City Fiber Optics Committee shall be the following, as well as others that may from time to time be determined: (1) to provide oversight to the consultant team, (2) to receive advice and recommendations from the Fiber Optics Task Force and to provide information to the Task Force to assist in carrying out its mission (3) to provide general coordination of and make necessary decisions regarding essential activities prior to the engagement of the enterprise management such as: . engineering contracts, . financing activities, . contracts for services, . network deployment decisions, . meeting regulatory and legal requirements, . preliminary marketing activities . preliminary coordination in regard to customer service and billing . other necessary activities Council Agenda - 5/14/07 (4) to be responsible for overall financial requirements of the project (5) to provide coordination with city staff and functions of the fiber optics project goals and requirements for implementation. The Monticello Fiber Optics Task Force shall continue to carry out its established tasks of gathering and analyzing information, acting as a channel of communication to and from the public and providing advice to the City Council and to the City Fiber Optics Committee. In addition the Task Force is asked to coordinate volunteer support and assist with marketing efforts for the City enterprise. The City Fiber Optics Committee and the Monticello Fiber Optics Task Force may choose from time to time to have joint meetings. B. AL TERNA TIVE ACTIONS: 1. Approve the formation of a City Fiber Optics Committee to oversee activities related to the Monticello Fiber Optics Project during the interim phase prior to engagement of the enterprise management. This alternative, if selected, will be reviewed further by the City Attorney to determine if it is appropriate to adopt an ordinance granting the authority noted above. Under any circumstance, the Committee is not authorized by this action to enter into agreements or take any action preserved for the full body of the City Council. 2. Do not approve the formation of a City Fiber Optics Committee. C. STAFF RECOMMENDATION: It is the recommendation of the City Administrator that a City Fiber Optics Committee be formed for the purpose of overseeing activities related to the fiber optics project. The committee will be comprised of the individuals named above and will work with other city staff and consultants to carry out the responsibilities as so noted. D. SUPPORTING DATA: None. Council Agenda: 5/14/07 13. Consideration of Grantinl! Conceptual Approval to Consolidate the Monticello HRA and EDA and establish a Committee to assist the City. BRA and EDA in expeditinl! this process. A. REFERENCE AND BACKGROUND: City Council is asked to consider consolidating economic and redevelopment efforts currently completed cooperatively by the EDA and HRA. The process proposed includes development of a new ordinance granting greater authority to the Monticello EDA followed by transfer of authority from the HRA to the EDA. It is proposed to replace the HRA with an EDA because an EDA has a wider array of authority with regards to Economic Development and Redevelopment. In addition, an EDA typically includes a board of seven which includes two City Council Members. This organizational make-up reduces some independence but also creates opportunities for unified action between Council and its Economic Development Authority. As you know, from time to time there has been discussion of consolidating efforts of staff and volunteers through the merger of two entities. Since there has not been an overriding reason to consider this item, it has remained on the backbumer in terms of priorities. At this time, however consideration of the merger needs to become a priority due to impending changes in the membership on both the EDA and HRA. It would make sense therefore to consider the merger prior to seeking volunteers to fill positions for each group. Ollie Koropchak recently updated me on HRA discussion in this regard. Here is an excerpt from an e-mail she recently provided to me. "Given the information from Steve Andrews, he plans to submit his resignation as HRA commissioner due to moving to Big Lake. Via a phone message from the airport, Darrin Lahr said he was unable to attend the HRA meeting tonight and due to his new position and amount of travel, his time commitment is limited and foresees resignation from the HRA and EDA. The three remaining HRA commissioners requested the item for the consideration to merge the EDA and HRA be placed on the council agenda of May 14. As far as the EDA, Ron Hoglund plans to resign December 2007 (Big Lake), Darrin (perhaps out), one vacant position. That leaves Barb Schwientek and Bill Demueles (who resides in the township). " Following is a brief summary of the steps that need to occur if Council provides direction to consolidate redevelopment and economic development power into one organization. . EDA powers currently in place should be expanded to include additional authority vested by the State. Currently, the EDA powers are limited by a somewhat restrictive Monticello Ordinance. This ordinance was restrictive to match the original intent of the EDA which was to implement a revolving loan fund. . Composition of the EDA will need to be determined. Some cities have elected to populate the EDA with the members ofthe City Council. Under this arrangement the Mayor and City Council Members all wear one hat. This arrangement provides for additional power in the hands of the Council which allows the City to move relatively quickly on projects. Many cities use a mix of City Council and citizens at large when determining the make-up of the EDA. The determination of the composition does not need to occur at this time. Council Agenda: 5/14/07 . Establishment of the membership on the EDA will need to occur. Council will need to determine whether or not to open up membership to the public at large, or simply assign interested members from the current organizations to the new board. Steve Bubul is likely to provide some advice as to the proper process to follow in this regard. . The mechanics of conferring HRA responsibilities, agreements etc. from the HRA to the new EDA will need to be identified. Please note that once Council approves the concept the matter will be forwarded to Steve Bubul who will be assisting in the process. It is likely that he will have additional steps or resolutions beyond my summary above. Also, there will be legal fees relating to the cost to consolidate the two groups which should not amount to more than a few thousand dollars. B. AL TERNA TIVE ACTIONS: 1. Motion granting conceptual approval to consolidate the EDA and HRA with the EDA as the prevailing authority. Motion to include establishment of a work group to assist with this process which will be comprised of two members from the City Council and representatives from the HRA and EDA. Under this alternative the subcommittee would be working on the language of an enabling resolution establishing the modified EDA and identifY options for the City Council to consider relating to the bullet points noted above. Ollie Koropchak will be responsible for moving this item forward as soon as possible. 2. Motion to deny or table the proposal to consolidate EDA and HRA. C. STAFF RECOMMENDATION: The City Administrator and Economic Development Director recommend Alternative #1 for reasons stated above. D. SUPPORTING DATA: Copy of State Law identifying potential power and authority of an Economic Development Authority. 469. Economic Development ECONOMIC DEVELOPMENT AUTHORITIES Page 1 of 15 469.090 DEFINITIONS. Subdivision 1. Generally. In sections 469.090 to 469.108, the terms defined in this section have the meanings given them herein, unless the context indicates a different meaning. Subd. 2. Authority. "Authority" means an ... economic development authority~ . Subd. 3. City. "City" means a home rule charter or statutory city. Subd. 4. Development. "Development" includes redevelopment, and "developing" includes redeveloping. Subd. 5. Cost of redevelopment. "Cost of redevelopment" means, with respect to an economic development district project, the cost of: (1) acquiring property, whether by purchase, lease, condemnation, or otherwise; (2) demolishing or removing structures or other improvements on acquired properties; (3) correcting soil deficiencies necessary to develop or use the property for an appropriate use as determined by the authority; (4) constructing or installing public improvements, including streets, roads, and utilities; (5) providing relocation benefits to the occupants of acquired properties; (6) planning, engineering, legal, and other services necessary to carry out the functions listed in clauses (1) to (5); and (7) the allocated administrative expenses of the authority for the project. History: 1987 c 291 s 91 469.091 ",ECONOMIC DEVELOPMENT AUTHORITY~. Subdivision 1. Establishment. A city may, by adopting an enabling resolution in compliance with the procedural requirements of section 469.093, establish an ... economic development authority~ that, subject to section 469.092, has the powers contained in sections 469.090 to 469.108 and the powers of a housing and redevelopment authority under sections 469.001 to 469.047 or other law, and of a city under sections 469.124 to 469.134 or otherlaw. If the ... economic development authority" exercises the powers of a housing and redevelopment authority contained in sections 469.001 to 469.047 or other law, the city shall exercise the powers relating to a housing and redevelopment authority granted to a city by sections 469.001 to 469.047 or other law. Subd. 2. Characteristics. An ... economic development authority" is a public body corporate and politic and a political subdivision of the state with the right to sue and be sued in its own name. An authority carries out an essential governmental function when it exercises its power, but the authority is not immune from liability because of this. Subd. 3. Unpaid officers, directors, and agents; liability. Section 317 A.257 applies to an ... economic development authority" or to a nonprofit corporation exercising the powers of an ... economic development authority" . History: 1987 c 291 s 92; 1994 c 623 art 5 s 2 469.092 LIMIT OF POWERS. Subdivision I. Resolution. Tbe enabling resolution may impose the following limits upon the actions of the authority: (I) that the authority must not exercise any specified powers contained in sections 469.001 to 469.047, 469.09Q to 469.108, and '169,11'1 to 469.134 or that the authority must not exercise any powers without the prior approval of the city council; (2) that, except when previously pledged by the authority, the city council may by resolution require the authority to transfer any portion of the reserves generated by activities of the authority that the city council determines is not necessary for the successful operation of the authority to http://ros.leg.mnlbinlgetpub.php?pubtype=STAT _ CHAP&year=2006§ion=469&keyword _ type=exac... 5/10/2007 469. Economic Development the debt service fund of the city, to be used solely to reduce tax levies for bonded indebtedness of the city; (3) that the sale of all bonds or obligations issued by the authority be approved by the city council before issuance; (4) that the authority follow the budget process for city departments as provided by the city and as implemented by the city council and mayor; (5) that all official actions of the authority must be consistent with the adopted comprehensive plan of the city, and any official controls implementing the comprehensive plan; (6) that the authority submit all planned activities for influencing the action of any other govermnental agency, subdivision, or body to the city council for approval; (7) that the authority submit its administrative structure and management practices to the city council for approval; and (8) any other limitation or control established by the city council by the enabling resolution. Subd. 2. Modification of resolution. The enabling resolution may be modified at any time, subject to subdivision 5, and provided that any modification is made in accordance with this section. Subd. 3. Report on resolution. Without limiting the right of the authority to petition the city council at any time, each year, within 60 days of the anniversary date of the first adoption of the enabling resolution, the authority shall submit to the city council a report stating whether and how the enabling resolution should be modified. Within 30 days of receipt of the recommendation, the city council shall review the enabling resolution, consider the recommendations of the authority, and make any modification it considers appropriate. Modifications must be made in accordance with the procedural requirements of section 469.093. Subd. 4. Compliance. The city council's determination that the authority has complied with the limitations imposed under this section is conclusive. Subd. 5. Limits; security. Limits imposed under this section must not be applied in a manner that impairs the security of any bonds issued or contracts executed before the limit is imposed. The city council must not modify any limit in effect at the time any bonds or obligations are issued or contracts executed to the detriment of the holder of the bonds or obligations or any contracting party. History: 1987 c 291 s 93 Page 2 of IS 469.093 PROCEDURAL REQUIREMENT. Subdivision I. Enabling resolution. The creation of an authority by a city must be by written resolution referred to as the enabling resolution. Before adopting the enabling resolution, the city council shall conduct a public hearing. Notice of the time and place of hearing, a statement of the purpose of the hearing, and a summary of the resolution must be published in a newspaper of general circulation within the city once a week for two consecutive weeks. The first publication must appear not more than 30 days from the date of the public hearing. Subd. 2. Modifications. All modifications to the enabling resolution must be by written resolution and must be adopted after notice is given and a public hearing conducted as required for the original adoption of the enabling resolution. History: 1987 c 291 s 94 469.094 TRANSFER OF AUTHORITY. Subdivision 1. Economic development, housing, redevelopment powers. The city may, by ordinance, divide the economic development, housing, and redevelopment powers granted under sections 469.001 to <169.047 and 1Q9.09Q to 'L62,.l08 between the "economic development authority" and any other authority or commission established under statute or city charter for http://ros.leg.mn/bin/getpub.php?pubtype=ST AT_CHAP &year=2006§ion=469&keyword _ type=exac... 5/10/2007 Page 3 of 15 469. Economic Development economic development, housing, or redevelopment as provided in subdivision 2. Subd. 2. Project control, authority, operation. The city may, by resolution, transfer the control, authority, and operation of any project as defined in section 1_69..17'h~1.!bm-"isionJl, or any other program or project authorized by sections 469.001 to 469.047 or 469.124 to 469.134 located within the city, from the governmental agency or subdivision that established the project to the <4 economic development authority ~ . The city council may also require acceptance of control, authority, and operation ofthe project by the <4 economic development authority" . The <4 economic development authority ~ may exercise all of the powers that the governmental unit establishing the project could exercise with respect to the project. When a project or program is transferred to the .. economic development authority ~ , the authority shall covenant and pledge to perform the terms, conditions, and covenants of the bond indenture or other agreements executed for the security of any bonds issued by the governmental subdivision that initiated the project or program. The <4 economic development authority ~ may exercise all of the powers necessary to perform the terms, conditions, and covenants of any indenture or other agreements executed for the security of the bonds and shall become obligated on the bonds when the project or program is transferred as provided in this subdivision. If the city transfers a housing project or a housing development project to the <ill economic development authority ~ , the city must transfer all housing development and management powers relating to that specific project to the authority. Subd. 3. Transfer of personnel. Notwithstanding any other law or charter provision to the contrary, the city council may, by resolution, place any employees of the housing and redevelopment authority under the direction, supervision, or control of the <4 economic development authority ~ . The placement of any employees under the direction, supervision, or control of the .. economic development authority ~ does not affect the rights of any employees of the housing and redevelopment authority, including any rights existing under a collective bargaining agreement or fringe benefit plan. The employees shall become employees of the <ill economic development authority" . History: 1987 c 291 s 95; 1990 c 532 s 11,12 469.095 COMMISSIONERS; APPOINTMENT, TERMS, VACANCIES, PAY, REMOVAL. Subdivision \. Commissioners. Except as provided in subdivision 2, paragraph (d), an <ill economic development authority ~ shall consist of either three, five, or seven commissioners who shall be appointed after the enabling resolution provided for in section 469.093 becomes effective. The resolution must indicate the number of commissioners constituting the authority. Subd. 2. Appointment, terms; vacancies. (a) Three-member authority: the commissioners constituting a three-member authority, one of whom must be a member ofthe city council, shall be appointed by the mayor with the approval of the city council. Those initially appointed shall be appointed for terms of two, four, and six years, respectively. Thereafter all commissioners shall be appointed for six-year terms. (b) Five-member authority: the commissioners constituting a five-member authority, two of whom must be members of the city council, shall be appointed by the mayor with the approval of the city council. Those initially appointed shall be appointed for terms of two, three, four, five, and six years respectively. Thereafter all commissioners shall be appointed for six-year terms. (c) Seven-member authority: the commissioners constituting a seven-member authority, two of whom must be members of the city council, shall be appointed by the mayor with the approval of the city council. Those initially appointed shall be appointed for terms of one, two, three, four, and five years respectively and two members for six years. Thereafter all commissioners shall be appointed for six-year terms. (d) The enabling resolution may provide that the members of the city council shall serve as http://ros.leg.mnlbinlgetpub.php?pubtype=ST AT_CHAP &year=2006§ion=469&keyword _ type=exac... 5/1012007 . Page 4 of15 469. Economic Development the commissioners. (e) The enabling resolution may provide for the appointment of members of the city council in excess of the number required in paragraphs (a), (b), and (c). (f) A vacancy is created in the membership of an authority when a city council member of the authority ends council membership. A vacancy for this or another reason must be filled for the balance ofthe unexpired term, in the manner in which the original appointment was made. The city council may set the term of the commissioners who are members of the city council to coincide with their term of office as members of the city council. Subd. 3. Increase in commission members. An authority may be increased from three to five or seven members, or from five to seven members by a resolution adopted by the city council following the procedure provided for modifying the enabling resolution in section 169.092. Subd. 4. Compensation and reimbursement. A commissioner, including the president, shall be paid for attending each regular or special meeting of the authority in an amount to be determined by the city council. In addition to receiving pay for meetings, the commissioners may be reimbursed for actual expenses incurred in doing official business of the authority. All money paid for compensation or reimbursement must be paid out of the authority's budget. Subd. 5. Removal for cause. A commissioner may be removed by the city council for inefficiency, neglect of duty, or misconduct in office. A commissioner shall be removed only after a hearing. A copy of the charges must be given to the commissioner at least ten days before the hearing. The commissioner must be given an opportunity to be heard in person or by counsel at the hearing. When written charges have been submitted against a commissioner, the city council may temporarily suspend the commissioner. Ifthe city council finds that those charges have not been substantiated, the commissioner shall be immediately reinstated. If a commissioner is removed, a record of the proceedings, together with the charges and findings, shall be filed in the office of the city clerk. History: 1987 c 291 s 96 469.096 OFFICERS; DUTIES; ORGANIZATIONAL MATTERS. Subdivision 1. Bylaws, rules, seal. An authority may adopt bylaws and rules of procedure and shall adopt an official seal. Subd. 2. Officers. An authority shall elect a president, a vice-president, a treasurer, a secretary, and an assistant treasurer. The authority shall elect the president, treasurer, and secretary annually. A commissioner must not serve as president and vice-president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. Subd. 3. Duties and powers. The officers have the usual duties and powers of their offices. They may be given other duties and powers by the authority. Subd. 4. Treasurer's duties. The treasurer: (I) shall receive and is responsible for authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse authority money by check only; (4) shall keep an account of the source of all receipts, and the nature, purpose, and authority of all disbursements; and (5) shall file the authority's detailed financial statement with its secretary at least once a year at times set by the authority. Subd. 5. Assistant treasurer. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or disabled. Subd. 6. Treasurer's bond. The treasurer shall give bond to the state conditioned for the faithful discharge of official duties. The bond must be approved as to fonn and surety by the http://ros.leg.rnnlbin/ getpub.php?pubtype=ST AT_CHAP &year=2006§ion=469&keyword _ type=exac... 5/10/2007 ~ 469. Economic Development authority and filed with the secretary. The bond must be for twice the amount of money likely to be on hand at anyone time, as determined at least annually by the authority provided that the bond must not exceed $300,000. Subd. 7. Public money. Authority money is public money. Subd. 8. Checks. An authority check must be signed by the treasurer and one other officer named by the authority in a resolution. The check must state the name of the payee and the nature of the claim that the check is issued for. Subd. 9. Financial statement. The authority's detailed financial statement must show all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the authority's credits and assets, and its outstanding liabilities in a form required for the city's financial statements. The authority shall examine the statement together with the treasurer's vouchers. If the authority finds that the statement and vouchers are correct, it shall approve them by resolution and enter the resolution in its records. History: 1987 c 291 s 97 Page 5 of 15 469.097 EMPLOYEES; SERVICES; SUPPLIES. Subdivision 1. Employees. An .. economic development authority" may employ an executive director, a chief engineer, other technical experts and agents, and other employees as it may require, and determine their duties, qualifications, and compensation. Subd. 2. Contract for services. The authority may contract for the services of consultants, agents, public accountants, and other persons needed to perform its duties and exercise its powers. Subd. 3. Legal services. The authority may use the services of the city attorney or hire a general counsel for its legal needs. The city attorney or general counsel, as determined by the authority, is its chieflegal advisor. Subd. 4. Supplies. The authority may purchase the supplies and materials it needs to carry out sections 469.090 to 469.108. Subd. 5. City purchasing. An authority may use the facilities of its city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. Subd. 6. City facilities, services. A city may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to its authority. Subd. 7. Delegation power. The authority may delegate to one or more of its agents or employees powers or duties as it may deem proper. History: 1987 c 291 s 98 469.098 CONFLICT OF INTEREST. Except as authorized in section 471.88 a commissioner, officer, or employee of an authority must not acquire any financial interest, direct or indirect, in any project or in any property included or planned to be included in any project, nor shall the person have any financial interest, direct or indirect, in any contract or proposed contract for materials or service to be furnished or used in connection with any project. History: 1987 c 291 s 99 469.099 DEPOSITORIES; DEFAULT; COLLATERAL. Subdivision 1. Named; bond. Every two years an authority shall name national or state banks within the state as depositories. Before acting as a depository, a named bank shall give the authority a bond approved as to form and surety by the authority. The bond must be conditioned for the safekeeping and prompt repayment of deposits. The amount of bond must be at least equal to the maximum sums expected to be deposited at anyone time. http://ros.leg.mn/bin/getpub.php?pubtype=STAT_ CHAP &year=2006§ion=469&keyword _ type=exac... 5/10/2007 469. Economic Development Subd. 2. One bank account. An authority may deposit all its money from any source in one bank account. Subd. 3. Default; collateral. When authority funds are deposited by the treasurer in a bonded depository, the treasurer and the surety on the treasurer's official bond are exempt from liability for the loss ofthe deposits because ofthe failure, bankruptcy, or other act or default of the depository. However, an authority may accept assignments of collateral from its depository to secure deposits just as assignments of collateral are permitted by law to secure deposits of the authority's city. History: 1987 c 291 s 100 Page 6 of 15 469.100 OBLIGATIONS. Subdivision 1. Taxes and assessments prohibited. An authority must not levy a tax or special assessment, except as otherwise provided in sections 469.090 to 469.108, pledge the credit of the state or the state's municipal corporations or other subdivisions, or incur an obligation enforceable on property not owned by the authority. Subd. 2. Budget to city. Annually, at a time fixed by charter, resolution, or ordinance of the city, an authority shall send its budget to its city's council. The budget must include a detailed written estimate of the amount of money that the authority expects to need from the city to do authority business during the next fiscal year. The needed amount is what is needed in excess of any expected receipts from other sources. Subd. 3. Fiscal year. The fiscal year of the authority must be the same as the fiscal year of its city. Subd. 4. Report to city. Annually, at a time and in a form fixed by the city council, the authority shall make a written report to the council giving a detailed account of its activities and of its receipts and expenditures during the preceding calendar year, together with additional matters and recommendations it deems advisable for the economic development of the city. Subd. 5. Audits. The financial statements of the authority must be prepared, audited, filed, and published or posted in the manner required for the financial statements of the city that established the authority. The financial statements must permit comparison and reconciliation with the city's accounts and fmancial reports. The report must be filed with the state auditor by June 30 of each year. The auditor shall review the report and may accept it or, in the public interest, audit the books of the authority. Subd. 6. Compliance examinations. At the request of the city or upon the auditor's initiative, the state auditor may make a legal compliance examination of the authority for that city. Each authority examined must pay the total cost of the examination, including the salaries paid to the examiners while actually engaged in making the examination. The state auditor may bill monthly or at the completion of the audit. All collections received must be deposited in the general fund. History: 1987 c 291 s 101; 1989 c 335 art 4 s 88 469.101 POWERS. Subdivision I. Establishment. An .... economic development authority" may create and defme the boundaries of economic development districts at any place or places within the city if the district satisfies the requirements of section 469.174. subdivision 10, except that the district boundaries must be contiguous, and may use the powers granted in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a public hearing on the matter. At least ten days before the hearing, the authority shall publish notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority shall find that an economic development district is proper and desirable to establish and develop within the city. Subd. 2. Acquire property. The ....economic development authority" may acquire by lease, purchase, gift, devise, or condemnation proceedings the needed right, title, and interest in property http://ros.1eg.mn/bin/getpub.php?pubtype=STAT _ CHAP&year=2006§ion=469&keyword _type=exac... 5/1012007 469. Economic Development to create economic development districts. It shall pay for the property out of money it receives under sections 469.090 to 469J08. It may hold and dispose of the property subject to the limits and conditions in sections 469.09Q to 4Ji.9.JQS. The title to property acquired by condemnation or purchase must be in fee simple, absolute. The authority may accept an interest in property acquired in another way subject to any condition of the grantor or donor. The condition must be consistent with the proper use of the property under sections 469.090 to 469.108. Property acquired, owned, leased, controlled, used, or occupied bY'the authority for any of the purposes of this section is for public governmental and municipal purposes and is exempt from taxation by the state or by its political subdivisions, except to the extent that the property is subject to the sales and use tax under chapter 297 A. The exemption applies only while the authority holds property for its own purpose. The exemption is subject to the provisions of section 272.02, subdivision 39 . When the property is sold it becomes subject to taxation. Subd. 3. Options. The "'economic development authority'" may sign options to purchase, sell, or lease property. Subd. 4. Eminent domain. The ... economic development authority'" may exercise the power of eminent domain under chapter 117, or under its city's charter to acquire property it is authorized to acquire by condemnation. The authority may acquire in this way property acquired by its owner by eminent domain or property already devoted to a public use only if its city's council approves. The authority may take possession of property to be condemned after it files a petition in condemnation proceedings describing the property. The authority may abandon the condemnation before taking possession. Subd. 5. Contracts. The "'economic development authority'" may make contracts for the purpose of economic development within the powers given it in sections 469.090 to 469.108. The authority may contract or arrange with the federal government, or any of its departments, with persons, public corporations, the state, or any of its political subdivisions, commissions, or agencies, for separate or joint action, on any matter related to using the authority's powers or performing its duties. The authority may contract to purchase and sell real and personal property. An obligation or expense must not be incurred unless existing appropriations together with the reasonably expected revenue of the authority from other sources are sufficient to discharge the obligation or pay the expense when due. The state and its municipal subdivisions are not liable on the obligations. Subd. 6. Limited partner. The ... economic development authority'" may be a limited partner in a partnership whose purpose is consistent with the authority's purpose. Subd. 7. Rights; easements. The "'economic development authority'" may acquire rights or an easement for a term of years or perpetually for development of an economic development district. Subd. 8. Supplies; materials. The ... economic development authority'" may buy the supplies and materials it needs to carry out this section. Subd. 9. Receive public property. The "'economic development authority'" may accept land, money, or other assistance, whether by gift, loan or otherwise, in any form from the federal or state government, or an agency of either, or a local subdivision of state government to carry out sections 469.090 to 469.108 and to acquire and develop an economic development district and its facilities under this section. Subd. 10. Development district authority. The ... economic development authority'" may sell or lease land held by it for economic development in economic development districts. The authority may acquire, sell, or lease single or multiple tracts of land regardless of size, to be developed as a part of the economic development of the district under sections 469.090 to 469.108. Subd. II. Foreign trade zone. The ... economic development authority'" may apply to the board defined in United States Code, title 19, section 81a, for the right to use the powers provided in United States Code, title 19, sections 81a to 81 U. [fthe right is granted, the authority may use Page 7 of 15 http://ros.leg.mn/bin/getpub. php?pubtype=ST A T _CHAP &year=2006§ion=469&keyword _ type=exac... 5/10/2007 469. Economic Development the powers. One authority may apply with another authority. Subd. 12. Relation to other redevelopment powers. The <lleconomic development authority II- may exercise powers and duties of a redevelopment agency under sections 469.152 to 4.65U65, for a purpose in sections 469.001 to 469.047 or 469.Q9J! to 469.108. The authority may also use the powers and duties in sections 469.001 to 469.047 and 469.090 to 469.108 for a purpose in sections 469.152 to 469.165. Subd. 13. Public facilities. The authority may operate and maintain a public parking facility or other public facility to promote development in an economic development district. Subd. 14. Government agent. An <ll economic development authority'- may cooperate with or act as agent for the federal or the state government, or a state public body, or an agency or instrumentality of a government or a public body to carry out sections 469.090 to 46~.10_8. or any other related federal, state, or local law in the area of economic development district improvement. Subd. 15. Studies, analysis, research. An authority may study and analyze economic development needs in the city, and ways to meet the needs. An authority may study the desirable patterns for land use for economic development and community growth and other factors affecting local economic development in the city and make the result of the studies available to the public and to industry in general. An authority may engage in research and disseminate information on economic development within the city. Subd. 16. Public relations. To further an authorized purpose, an authority may (I) join an official, industrial, commercial, or trade association, or another organization concerned with the purpose, (2) have a reception of officials who may contribute to advancing the city and its economic development, and (3) carry out other public relations activities to promote the city and its economic development. Activities under this subdivision have a public purpose. Subd. 17. Accept public land. An authority may accept conveyances of land from all other public agencies, commissions, or other units of government, if the land can be properly used by the authority in an economic development district, to carry out the purposes of sections 469.090 to 469.108. Subd. 18. Economic development. An authority may carry out the law on economic development districts to develop and improve the lands in an economic development district to make it suitable and available for economic development uses and purposes. An authority may fill, grade, and protect the property and do anything necessary and expedient, after acquiring the property, to make it suitable and attractive as a tract for economic development. An authority may lease some or all of its lands or property and may set up local improvement districts in all or part of an economic development district. Subd. 19. Loans in anticipation of bonds. After authorizing bonds under sections 469.102 and 469.103, an authority may borrow to provide money immediately required for the bond purpose. The loans must not exceed the amount of the bonds. The authority shall by resolution decide the terms of the loans. The loans must be evidenced by negotiable notes due in not more than 12 months from the date of the loan payable to the order of the lender or to bearer, to be repaid with interest from the proceeds of the bonds when the bonds are issued and delivered to the bond purchasers. The loan must not be obtained from any commissioner of the authority or from any corporation, association, or other institution of which an authority commissioner is a stockholder or officer. Subd. 20. Use of proceeds. The proceeds of obligations issued by an authority under section 469.103 and temporary loans obtained under subdivision 19 may be used to make or purchase loans for economic development facilities that the authority believes will require financing. To make or purchase the loans, the authority may enter into loan and related agreements, both before and after issuing the obligations, with persons, firms, public or private corporations, federal or state agencies, and governmental units under terms and conditions the authority considers Page 8 of 15 http://ros.leg.mnlbinlgetpub.php?pubtype=STAT_ CHAP &year=2006§ion=469&keyword _ type=exac... 5/10/2007 469. Economic Development appropriate. A governmental unit in the state may apply, contract for, and receive the loans. Chapter 475 does not apply to the loans. Subd. 21.[Repealed, 2000 c 490 art II s 44] Subd. 22. Secondary market. An authority may sell, at private or public sale, at the price or prices determined by the authority, any note, mortgage, lease, sublease, lease purchase, or other instrument or obligation evidencing or securing a loan made for the purpose of economic development, job creation, redevelopment, or community revitalization by a public agency to a business, for-profit or nonprofit organization, or an individual. Subd. 23. Supplying small business capital. Notwithstanding any contrary law, the authority may participate with public or private corporations or other entities, whose purpose is to provide seed or venture capital to small businesses that have facilities located or to be located in the district. For that purpose the authority may use not more than ten percent of available annual net income or $1,000,000 annually, whichever is less, to invest in equities or acquire equity-type investments. These investments can be made directly in eligible corporations or entities or acquired through participation in a public or private seed or venture capital fund. The participation by the authority may not exceed in any year 25 percent of the total amount of funds provided for venture or seed capital purposes by all of the participants. The corporation, entity, or fund shall report in writing each six months to the commissioners of the authority all investments and other action taken by it since the last report. Funds contributed to the corporation or entity must be invested pro rata with each contributor of capital taking proportional risks on each investment. As used in this subdivision, the term "small business" has the meaning given it in section 645.445. subdivision 2. History: 1987 c 291 s 102; 1988 c 580 s 5; 1991 c 295 s 2; 1992 c 363 art 1 s 13; 2000 c 418 art 2 s 7; 2006 c 214 s 20 Page 9 of 15 469.102 GENERAL OBLIGATION BONDS. Subdivision I. Authority; procedure. An -4 economic development authority" may issue general obligation bonds in the principal amount authorized by two-thirds majority vote of its city's council. The bonds may be issued in anticipation of income from any source. The bonds may be issued: (I) to secure funds needed by the authority to pay for acquired property or (2) for other purposes in sections 469.090 to 469.108. The bonds must be in the amount and form and bear interest at the rate set by the city council. Except as otherwise provided in sections 't6.9.090 to 469.108, the issuance of the bonds is governed by chapter 475. The authority when issuing the bonds is a municipal corporation under chapter 475. Subd. 2. Detail; maturity. The authority with the consent of its city's council shall set the date, denominations, place of payment, form, and details of the bonds. The bonds must mature serially. The first installment is due in not more than three years and the last in not more than 30 years from the date of issuance. Subd. 3. Signatures; coupous; liability. The bonds must be signed by the president of the authority, be attested by its secretary, and be countersigned by its treasurer; the signatures may be facsimile signatures. The interest coupons if any, must be attached to the bonds. The coupons must be executed and authenticated by the printed, engrossed, or lithographed facsimile signature of the authority's president and secretary. The bonds do not impose any personal liability on a member of the authority. Subd. 4. Pledge. The bonds must be secured by the pledge of the full faith, credit, and resources of the issuing authority's city. The authority may pledge the full faith, credit, and resources of the city only if the city specifically authorizes the authority to do so. The city council must first decide whether the issuance of the bonds by the authority is proper in each case and if so, the amount of bonds to issue. The city council shall give specific consent in an ordinance to the http://ros.1eg.mn/binlgetpub.php?pubtype=STAT_ CHAP &year=2006§ion=469&keyword _ type=exac... 5/1 0/2007 469. Economic Development pledge of the city's full faith, credit, and resources. The authority shall pay the principal amount of the bonds and the interest on it from taxes levied under this section to make the payment or from authority income from any source. Subd. 5. Tax levy. An authority that issues bonds under this section, shall, before issuing them, levy a tax for each year on the taxable property in the authority's city. The tax must be for at least five percent more than the amount required to pay the principal and interest on the bonds as the principal and interest mature. The tax must be levied annually until the principal and interest are paid in full. After the bonds have been delivered to the purchasers, the tax must not be repealed until the debt is paid. After the bonds are issued, the authority need not take any more action to authorize extending, assessing, and collecting the tax. On or before September 15, the authority's secretary shall send a certified copy ofthe levy to the county auditor, together with full information on the bonds for which the tax is levied. The county auditor shall extend and assess the levied tax annually until the principal and interest are paid in full. The authority shall transfer the surplus from the excess levy in this section to a sinking fund after the principal and interest for which the tax was levied and collected is paid. The authority may direct its secretary to send a certificate to the county auditor before September IS in a year. The certificate must state how much available income, including the amount in the sinking fund, the authority will use to pay principal or interest or both on each specified issue of the authority's bonds. The auditor shall then reduce the bond levy for that year by that amount. The authority shall then set aside the certified amount and may not use it for any purpose except to pay the principal and interest on the bonds. The taxes in this section shall be collected and sent to the authority by the county treasurer as provided in chapter 276. The taxes must be used only to pay the bonds when due. Subd. 6. Authorized securities. Bonds legally issued under this chapter are authorized securities under section ~0.14. A savings bank, trust company, or insurance company may invest in them. A public or municipal corporation may invest its sinking funds in them. The bonds may be pledged by a bank or trust company as security for the deposit of public money in place of a surety bond. The authority's bonds are instrumentalities of a public governmental agency. History: 1987 c 291 s 103; 1994 c 416 art 1 s 49; 1995 c 256 s 9; 2002 c 390 s 8 Page 100f15 469.103 REVENUE BONDS; PLEDGE; COVENANTS. Subdivision I. Authority. An .. economic development authorityll- may decide by resolution to issue its revenue bonds either at one time or in series from time to time. The revenue bonds may be issued to provide money to pay to acquire land needed to operate the authority, to purchase or construct facilities, to purchase, construct, install, or furnish capital equipment to operate a facility for economic development of any kind within the city, or to pay to extend, enlarge, or improve a project under its control. The issued bonds may include the amount the authority considers necessary to establish an initial reserve to pay principal and interest on the bonds. The authority shall state in a resolution how the bonds and their attached interest coupons are to be executed. Subd. 2. Form. The bonds of each series issued by the authority under this section shall bear interest at a rate or rates, shall mature at the time or times within 30 years from the date of issuance, and shall be in the form, whether payable to bearer, registrable as to principal, or fully registrable, as determined by the authority. Section 469.102. subdivision 6, applies to all bonds issued under this section, and the bonds and their coupons, if any, when payable to bearer, shall be negotiable instruments. Subd. 3. Sale. The sale of revenue bonds issued by the authority shall be at public or private sale. The bonds may be sold in the manner and for the price that the authority determines to be for the best interest of the authority. The bonds may be made callable, and ifso issued, may be refunded. http://ros.1eg.mnlbin/getpub.php?pubtype=STAT_ CHAP &year=2006§ion=469&keyword _type=exac... 5/1 0/2007 469. Economic Development Subd. 4. Agreements. The authority may by resolution make an agreement or covenant with the bondholders or their trustee. The authority must first decide that the agreement or covenant is needed or desirable to do what the authority may do under this section and to assure that the revenue bonds are marketable and promptly paid. Subd. 5. Revenue pledge. In issuing general obligation or revenue bonds, the authority may secure the payment of the principal and the interest on the bonds by a pledge of and lien on authority revenue. The revenue must come from the facility to be acquired, constructed, or improved with the bond proceeds or from other facilities named in the bond-authorizing resolutions. The authority also may secure the payment with its promise to impose, maintain, and collect enough rentals, rates, and charges, for the use and occupancy of the facilities and for services furnished in connection with the use and occupancy, to pay its current expenses to operate and maintain the named facilities, and to produce and deposit sufficient net revenue in a special fund to meet the interest and principal requirements of the bonds, and to collect and keep any more money required by the resolutions. The authority shall decide what constitutes "current expense" under this subdivision based on what is normal and reasonable under generally accepted accounting principles. Revenues pledged by the authority must not be used or pledged for any other authority purpose or to pay any other bonds issued under this section or under section 469.102, unless the other use or pledge is specifically authorized in the bond-authorizing resolutions. Subd. 6. Not city debt. Revenue bonds issued under this section are not a debt of the authority's city nor a pledge of that city's full faith and credit. The bonds are payable only from project revenue as described in this section. A revenue bond must contain on its face a statement to the effect that the .. economic development authority" and its city do not have to pay the bond or the interest on it except from revenue and that the faith, credit, and taxing power of the city are not pledged to pay the principal of or the interest on the bond. Subd. 7. Not applicable. Sections 469.153. subdivision 2, paragraph (e), and 469.154, subdivisions 3, 4, and 5 do not apply to revenue bonds issued under this section and sections 469.152 to 469.165 if the interest on the revenue bonds is subject to both state and federal income tax or if the revenue bond proceeds are not loaned by the authority to a private person. Subd. 8. Tax increment bonds. Obligations secured or payable from tax increment revenues and issued pursuant to this section or section 469.102 are subject to the provisions of section 46<:U78. History: 1987 c 291 s 104; 2006 c 259 art 9 s 8 Page 11 of 15 469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES. Sections 474A.Ol to "l74A.2l apply to obligations issued under sections 469.090 to 469.108 that are limited by federal tax law as defined in section <j74A.02. subc!ivision 8. History: 1987 c 291 s 105; 2005 c 10 art 1 s 71 469.105 SALE OF PROPERTY. Subdivision 1. Power. An .. economic development authority" may sell and convey property owned by it within the city or an economic development district if it determines that the sale and conveyance are in the best interests of the city or district and its people, and that the transaction furthers its general plan of economic development. This section is not limited by other law on powers of economic development authorities. Subd. 2. Notice; hearing. An authority shall hold a hearing on the sale. At the hearing a taxpayer may testify for or against the sale. At least ten, but not more than 20, days before the hearing the authority shall publish notice of the hearing on the proposed sale in a newspaper. The newspaper must be published and have general circulation in the authority's county and city. The http://ros.leg.mn/bin/getpub.php?pubtype=STAT_ CHAP &year=2006§ion=469&keyword _ type=exac... 5/10/2007 469. Economic Development notice must describe the property to be sold and state the time and place of the hearing. The notice must also state that the public may see the terms and conditions of the sale at the authority's office and that at the hearing the authority will meet to decide if the sale is advisable. Subd. 3. Decision; appeal. The authority shall make its findings and decision on whether the sale is advisable and enter its decision on its records within 30 days of the hearing. A taxpayer may appeal the decision by filing a notice of appeal with the district court in the city or economic development district's county and serving the notice on the secretary of the authority, within 20 days after the decision is entered. The only ground for appeal is that the action of the authority was arbitrary, capricious, or contrary to law. Subd. 4. Terms. The terms and conditions of sale of the property must include the use that the bidder will be allowed to make of it. The authority may require the purchaser to file security to assure that the property will be given that use. In deciding the sale terms and conditions the authority may consider the nature of the proposed use and the relation of the use to the improvement of the authority's city and the business and the facilities of the authority in general. The sale must be made on the authority's terms and conditions. The authority may publish an advertisement for bids on the property at the same time and in the same manner as the notice of hearing required in this section. The authority may award the sale to the bid considered by it to be most favorable considering the price and the specified intended use. The authority may also sell the property at private sale at a negotiated price if after its hearing the authority considers that sale to be in the public interest and to further the aims and purposes of sections 469.090 to 469.108. Subd. 5. One-year deadline. Within one year from the date of purchase, the purchaser shall devote the property to its intended use or begin work on the improvements to the property to devote it to that use. If the purchaser fails to do so, the authority may cancel the sale and title to the property shall return to it. The authority may extend the time to comply with a condition if the purchaser has good cause. The terms of sale may contain other provisions that the authority considers necessary and proper to protect the public interest. A purchaser must not transfer title to the property within one year of purchase without the consent of the authority. Subd. 6. Covenant running with the land. A sale made under this section must incorporate in the deed as a covenant running with the land the conditions of sections 'l69.090 to 469.108 relating to the use of the land. If the covenant is violated the authority may declare a breach of the covenant and seek a judicial decree from the district court declaring a forfeiture and a cancellation of the deed. Subd. 7. Plans; specifications. A conveyance must not be made until the purchaser gives the authority plans and specifications to develop the property sold. The authority must approve the plans and specifications in writing. The authority may require preparation of final plans and specifications before the hearing on the sale. History: 1987 c 291 s 106 Page 12 of 15 469.106 ADVANCES BY AUTHORITY. An authority may advance its general fund money or its credit, or both, without interest, for the objects and purposes of sections 469.090 to 469.108. The advances must be repaid from the sale or lease, or both, of developed or redeveloped lands. If the money advanced for the development or redevelopment was obtained from the sale of the authority's general obligation bonds, then the advances must have not less than the average annual interest rate that is on the authority's general obligation bonds that are outstanding at the time the advances are made. The authority may advance repaid money for more objects and purposes of sections 469.090 to 469.108 subject to repayment in the same manner. The authority must still use rentals of lands acquired with advanced money to collect and maintain reserves to secure the payment of principal and interest on revenue bonds issued to finance economic development facilities, if the rentals http://ros.leg.mnlbinlgetpub.php?pubtype=ST AT _ CHAP&year=2006§ion=469&keyword _ type=exac... 5/1 012007 469. Economic Development have been pledged for that purpose under section 469.103. Advances made to acquire lands and to construct facilities for recreation purposes if authorized by law need not be reimbursed under this section. Sections 469.Q9Q to '1(19.108 do not exempt lands leased from the authority to a private person, or entity from assessments or taxes against the leased property while the lessee is liable for the assessments or taxes under the lease. History: 1987 c 291 s 107 Page 13 of15 469.107 CITY MAY LEVY TAXES FOR <4lECONOMIC DEVELOPMENT AUTHORlTY.... Subdivision 1. City tax levy. A city may, at the request of the authority, levy a tax in any year for the benefit of the authority. The tax must be not more than 0.01813 percent of taxable market value. The amount levied must be paid by the city treasurer to the treasurer of the authority, to be spent by the authority. Subd. 2. Reverse referendum. A city may increase its levy for <4l economic development authority'" purposes under subdivision I in the following way. Its city council must first pass a resolution stating the proposed amount of levy increase. The city must then publish the resolution together with a notice of public hearing on the resolution for two successive weeks in its official newspaper or if none exists in a newspaper of general circulation in the city. The hearing must be held two to four weeks after the first publication. After the hearing, the city council may decide to take no action or may adopt a resolution authorizing the proposed increase or a lesser increase. A resolution authorizing an increase must be published in the city's official newspaper or if none exists in a newspaper of general circulation in the city. The resolution is not effective if a petition requesting a referendum on the resolution is filed with the city clerk within 30 days of publication of the resolution. The petition must be signed by voters equaling five percent of the votes cast in the city in the last general election. The election must be held at a general or special election. Notice of the election must be given in the manner required by law. The notice must state the purpose and amount of the levy. History: 1987 c 291 s 108; 1988 c 719 art 5 s 84; 1989 c 277 art 4 s 64; 1992 c 511 art 5 s 13 469.108 SPECIAL LAW; OPTIONAL USE. A city that has established a port authority by special law or that has been granted the power to establish a port authority by special law, or a city whose city council has been authorized to exercise the powers of a port authority by special law may elect to use the powers granted in sections 469.090 to 469.108. If the election is made, the powers and duties set forth in sections 469.09J) to 469.108 supersede the special law and the special law must not be used after the election. The use of powers under sections 469.090 to 469.108 by a city described in this section does not impair the security of any obligations issued or contracts or agreements executed under the special law. Control, authority, and operation of any project may be transferred to the authority in the manner provided in section 469.094. History: 1987 c 291 s 109 469.1081 LIABLE IN CONTRACT OR TORT. Subject to the provisions of chapter 466, an authority shall be liable in contract or in tort in the same manner as a private corporation. The commissioners of an authority shall not be personally liable as such on its contracts, or for torts, not committed or directly authorized by them. The property or funds of an authority shall not be subject to attachment, or to levy and sale on execution, but, if an authority refuses to pay a judgment entered against it in any court of competent jurisdiction, the district court for the county in which the authority is situated may, by writ of mandamus, direct the treasurer of the authority to pay the judgment from any unencumbered funds available for that purpose. http://ros.1eg.mnlbinlgetpub.php?pubtype=STAT_ CHAP &year=2006§ion=469&keyword _ type=exac... 5/10/2007 469. Economic Development History: 1991 c 342 s 13 Page 14 of 15 469.1082 COUNTY EDA OR HRA WITH EDA POWERS IN NONMETRO COUNTY. Subdivision 1. Authority to create. A county may form a county ... economic development authority" or grant a housing and redevelopment authority the powers specified in subdivision 4, clause (2), if it receives a recommendation to do so from a committee formed under subdivision 2. An ... economic development authority" established under this section has all the powers and rights of an authority under sections '163.090 to 46'U.Qli1, except the authority granted under section 469.094 if so limited under subdivision 4. This section is in addition to any other authority to create a county ... economic development authority ~ or service provider. Nothing in this section shall alter or impair any grant of powers, or any other authority granted to a community development agency, a county housing and redevelopment authority, or any county as provided in section 3830.41; Laws 1974, chapter 473, as amended; or Laws 1980, chapter 482, as amended. Any county that has granted economic development powers to a community development agency or a county housing and redevelopment authority under any of these provisions may not form a county ... economic development authority~ or grant a housing and redevelopment authority the powers specified in subdivision 4, clause (2). Subd. 2. Local committees. Upon notice to all local government units and development agencies within the county, a county may adopt a resolution to create a committee to recommend options for a county economic development service provider. The committee shall consist of no fewer than II and no more than 15 members appointed by the county board. At least one city official, at least one housing and redevelopment official, and at least one township official from the county to be served by the county economic service provider shall be included on the committee. Members may also represent school districts, political subdivisions that currently provide services under sections 469.001 to 469.047 and 469.090 to 469.1081, nonprofit or for-profit housing and economic development organizations, business, and labor organizations located within the county. Political subdivision representatives must be selected by their local governments and must constitute at least 50 percent of the total committee membership. The county may appoint no more than two county commissioners. The committee shall select a chair at its initial meeting. Subd. 3. Committee report. The committee shall issue its report within 90 days ofits initial meeting. The committee may request one 60-day extension from the county board. The report must contain the committee's recommendation for the preferred organizational option for a county economic development service provider, including the distance from the boundary of the city that may be controlled by each affected city in subdivision 5. The distance may not exceed two miles from the city boundary. The report must contain written findings on issues considered by the committee including, but not limited to, the following: (1) identification of the current level of economic development, housing, and community development programs and services provided by existing agencies, any existing gaps in programs and services, and the capacity and ability of those agencies to expand their activities; and (2) the recommended organizational option for providing needed economic development, housing, and community development services in the most efficient, effective manner. Subd. 4. Organizational options. The committee may only recommend: (1) establishment of a county ... economic development authority II- to operate under sections 469.Q90 to 469.10~SJ., except that the county shall not have the powers of section '!ii2..09'! without the consent of an existing county housing and redevelopment authority operating within that county. For the purposes of a county ... economic development authority" 's operation, the county is considered to be the city and the county board is considered to be the city council; (2) requiring an existing county housing and redevelopment authority or multicounty housing http://ros.1eg.mnlbinlgetpub.php?pubtype=ST A T _CHAP &year=2006§ion=469&keyword _ type=exac... 5/1 0/2007 469. Economic Development and redevelopment authority to operate under sections 469.09Q to 469.1081; (3) that the county pursue special legislation; or (4) no change in the existing structure. Subd. 5. Area of operation. The area of operation of a county economic development service provider created under this section shall include all cities within a county that have adopted resolutions electing to participate. A city may adopt a resolution electing to withdraw participation. The withdrawal election may be made every fifth year following adoption of the resolution electing participation. The withdrawal election is effective on the anniversary date of the original resolution provided notice is given to the county <ill economic development authority" not less than 90 nor more than 180 days prior to that anniversary date. The city electing to withdraw retains any rights, obligations, and liabilities it obtained or incurred during its participation. Any city within the county shall have the option to adopt a resolution to prohibit the county economic development service provider created under this section from operating within its boundaries and (I) within an agreed upon urban service area, or (2) within the distance approved in the committee report referenced in subdivision 3. If a city prohibits a county economic development service provider created under this section from operating within its boundaries, the city's property taxpayers shall not be subject to the property tax levied for the county economic development service provider. Subd. 6. City economic development authorities. If a county economic development service provider has been established under this section, existing city economic development authorities shall continue to function and operate under sections 469.090 to 469.1081. Additional city economic development authorities may be created within the area of operation of the county economic development service provider created under this section without the explicit concurrence of the county economic development service provider. Subd. 7. Continuation of existing county and multicounty housing and redevelopment authorities. Existing county and multicounty housing and redevelopment authorities shall continue to function and operate under the provisions of sections 469.001 to 469.047. Subd. 8. Nine-member boards authorized. In addition to the board options under section '1.69.095, a county <ill economic development authority" may have a nine-member board. If the authority has a nine-member board, at least two members must be county commissioners appointed by the county board. Of the county <4 economic development authority" board members initially appointed, two each shall be appointed for terms of one, two, or three years, respectively, and one each for terms of four, five, or six years, respectively. Thereafter, all authority members shall be appointed for six-year terms. History: 2000 c 484 art 1 s 4; 1Sp2005 c 1 art 4 s 106; 1Sp2005 c 3 art 7 s 10 Page 15 of IS http://ros.leg.mn/binlgetpub.php?pubtype=STAT_ CHAP &year=2006§ion=469&keyword _ type=exac... 5/1012007 ;0 ;0 00> ~ " tJ .."i "'n '"" 0> ;0 ,en 0 0 >-l C i5 >-' '-<trH '" P Z , 0" .o~ >-' , 0' ,n m 0 '" " "'n roO' '" 01 ;0 rn 00 ~, 0 , 0 ro ::;g OC 0 H C "' 00 " tJ '0 ro >-l roO' , 0 en ~ ~- '" 0' 0 0 " ~. "'0 0 >-' 0 "0> m 0 ~ w"' n.. p tJ '" en 0> 0 , p eo ..ro 0'0 'U >-l 0 "''' >-"~. 0> 0 "'OJ ro n " m '" n 01 0 '" n ~ 0 " n ~ rn 01 0 rn 3 Z ~ 0 '" >-l :r '0 , 01 ro ~ >-' ~ 0. ~- 0 C ~ , >-" 0' 0 ill ro " ~ 0 "' "' p zo , ro >-' '0 ~- 0. "' n >-" en "' m '0 01 en~ n '0 0 '" ~ ro rn " . 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